FASB parent votes to hike independence.
Position | Business Briefs - Financial Accounting Standards Board 's Financial Accounting Foundation's trustee selection procedure - Brief Article |
The groundswell of activity on independence isn't limited to auditors and directors, nor is it coming solely from the SEC and the major stock exchanges.
The governors of the Financial Accounting Standards Board (FASB) are moving to ensure that the perception of independence is increased there, as well.
Meeting in late July, the Financial Accounting Foundation (FAF), which has oversight, appointment and fundraising responsibilities for the FASB and the Governmental Accounting Standards Board (GASB), voted to change its certificate of incorporation and by-laws to increase the independence of its trustee appointment process. The change was effective immediately.
The current FAF trustee appointment process is based on eight constituent organizations that submit names of prospective trustees when their respective seats on the FAF Board of Trustees open. Appointment of these nominees requires approval by the majority of those heading up the constituent organizations.
The FAF consists of 16 trustees...
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