Conceptual framework, revenue recognition top FASAC priority list.

• Author: Heffes, Ellen M.
• Position: FinancialREPORTING - Financial Accounting Standards Advisory Council

For the fifth consecutive year, the conceptual framework and revenue recognition have topped the list of issues that Financial Accounting Standards Advisory Council (FASAC) members believe should be the Financial Accounting Standards Board's (FASB) top priorities.

Other key observations from FASAC's annual survey on FASB priorities provides valuable perspectives and observations about the board's process and direction. The results were reported after asking council members, board members and other interested constituents to provide their views about FASB priorities, future financial reporting issues, international convergence and educational efforts.

Thirty-one current FASAC members, 7 board members and 35 other constituents responded to the survey. It should be noted that among the "other constituents" are several members of the Small Business Advisory Committee and the User Advisory Council.

In addition to the conceptual framework and revenue recognition topping the list, other key conclusions, as noted in FASB's summary of survey results, include:

* FASAC members believe that fair value issues, complex financial instruments and companies' strategic alliances will require the board's future attention;

* Members overwhelmingly support the notion of international convergence but would advise the board to address a pressing domestic need on its own if a joint project would take significantly longer; and

* While many FASAC members do not believe that the board should be in the business of developing training or educational materials, they encouraged the board to enhance its outreach to the academic community and others to ensure that today's and tomorrow's accountants are prepared for new concepts in accounting standards.

Other key issues that appeared most often in FASAC members' responses include: leases, financial statement presentation and postretirement benefit obligations, including pensions. The five priorities are the same items that ranked highest in last year's FASAC member responses; however, the order has changed. In 2005, revenue recognition topped the list by itself; in the 2006 survey, revenue recognition and conceptual framework share the top spot.

Other topics raised that are expected to receive consideration by the board include: fair value issues; disclosure framework...