FASAC announces 2006 priorities.For the fourth consecutive year, the Financial Accounting Standards Advisory Council (FASAC FASAC Financial Accounting Standards Advisory Council ) of the Financial Accounting Standards Board Financial Accounting Standards Board (FASB) Board composed of independent members who create and interpret Generally Accepted Accounting Principles (GAAP). (FASB FASB See: Financial Accounting Standards Board FASB See Financial Accounting Standards Board (FASB). ) was queried about top priorities for the coming year. The board believes it appropriate to take a fresh look at its agenda each year. Results can indicate what to expect from the FASB in 2006. This year, the survey asked FASAC members, FASB board members and other interested constituents for their views on: FASB priorities; future financial reporting issues; simplification; the right level of implementation guidance; and differential accounting standards for certain entities. Some highlights of the 170-page report follow: * For the fourth consecutive year, revenue recognition topped the list of issues that council members believe the board should address. * The next four "most popular" issues, in order, are: pension accounting and related issues; conceptual framework For the concept in aesthetics and art criticism, see . A conceptual framework is used in research to outline possible courses of action or to present a preferred approach to a system analysis project. ; financial performance reporting by business enterprises; and accounting for leases and other contractual obligations. * Following the top five are several other topics that should receive consideration by the board. These are: fair value, disclosure framework, consolidations, purchase method procedures and financial instruments and derivatives derivatives In finance, contracts whose value is derived from another asset, which can include stocks, bonds, currencies, interest rates, commodities, and related indexes. Purchasers of derivatives are essentially wagering on the future performance of that asset. . * FASAC members had a multitude of suggestions for the board on how to address simplification, including field-testing proposed standards more aggressively, giving additional weight to cost-benefit considerations and using more examples to illustrate concepts. * Nearly all FASAC respondents In the context of marketing research, a representative sample drawn from a larger population of people from whom information is collected and used to develop or confirm marketing strategy. believe that a separate set of accounting standards for private companies is not warranted. Most agreed, however, that the board should continue to address the issue on a case-by-case basis and provide modifications to disclosures or to effective dates of standards when appropriate. * When asked about projects to remove from the board's agenda, of those who responded (or didn't say "no"), the projects are: short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. international convergence; purchase method procedures; noncontrolling interests; and financial performance reporting. |
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