FEI positions: how are they developed?One of FEI's primary missions is "to represent the views of members before regulatory and legislative bodies and the public." Fulfilling this mission often requires the development of a position statement on proposed accounting standards and other regulations or legislation. What is the due process that assures that FEI FEI
Fédération Équestre Internationale. positions reasonably represent the views of its members? How are FEI positions developed?
The simple answer is that FEI positions are developed by or in close cooperation with members. And before any official FEI position is released, it must be formally approved by an authorized committee representing the membership of FEI.
For many years, FEI has operated with two levels of FEI positions. First, FEI's technical committees are authorized to prepare and distribute position statements on issues that clearly fall within their scope of responsibility, provided that the position is approved by two-thirds of the committee's members. When issued, those statements reflect the views of the committee that has the responsibility and the technical expertise for dealing with the subject at hand, and those statements are presented as official positions of that FEI committee.
If an issue extends beyond the scope of responsibility of a specific comittee, the committee closest to the issue, or an ad hoc committee ad hoc committee A committee formed with the purpose of addressing a specific issue or issues, which theoretically is disbanded once its raison d'etre is finished with representatives from two or more concerned committees, will be charged with drafting a position statement for submission to FEI's Executive Committee. Upon approval by a majority of the Executive Committee, the statement may then be published as an official position of FEI. In both cases, the process is driven by members representing members.
FEI's position on the Financial Fraud Detection and Disclosure Act in 1991 and the Institute's long-time support of federal financial management reform are examples of official FEI positions that received the approval of FEI's Executive Committee.
FEI currently has nine technical committees, each of which focuses on a specific area of concentration of importance to FEI members. These committees are made up of volunteer members who represent the membership at large. Committee members track developments, analyze issues, and study regulatory and legislative proposals from 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
See Financial Accounting Standards Board (FASB). ), the Securities and Exchange Commission (SEC), Congress, federal agencies, and other regulatory bodies such as the U.S. Department of Labor and the Pension Benefit Guaranty Corporation Pension Benefit Guaranty Corporation (PBGC)
A federal agency that insures the vested benefits of pension plan participants (established in 1974 by the ERISA legislation).
Pension Benefit Guaranty Corporation .
Technical committees normally form subcommittees to track the various issues they follow. As an example, FEI's Committee on Corporate Reporting presently has four standing and sixteen ad hoc and project subcommittees, all staffed by CCR members. During the first half of 1992, CCR, among other things, submitted its comments on three exposure drafts and a discussion memorandum to the FASB, on another three exposure drafts to the International Accounting Standards Committee International Accounting Standards Committee was founded in June 1973 in London and replaced by the International Accounting Standards Board on April 1, 2001. It was responsible for developing the International Accounting Standards and promoting the use and application of these , and to the AICPA AICPA
See American Institute of Certified Public Accountants (AICPA). Auditing Standards Board In the United States, the Auditing Standards Board (ASB) is the senior technical committee designated by the American Institute of Certified Public Accountants (AICPA) to issue auditing, attestation, and quality control statements, standards and guidance to certified public .
Similarly, FEI's Committee on Government Business (CGB) testified before the Cost Accounting Standards Board The role of the Accounting Standards Board (ASB) is to issue accounting standards in the United Kingdom. It is recognised for that purpose under the Companies Act 1985. It took over the task of setting accounting standards from the Accounting Standards Committee (ASC) in 1990. on the Board's role and mission; the Committee on Investment of Employee Benefit Assets (CIEBA) urged the SEC to keep its investment advisor status for pension fund real estate advisors; and the Committee on Government Liaison (CGL) urged the Senate Judiciary Committee The U.S. Senate established the Committee on the Judiciary on December 10, 1816, as one of the original 11 standing committees. It is also one of the most powerful committees in Congress; among its wide range of jurisdictions is investigation of federal judicial nominees and oversight of to support the Product Liability and the Access to Justice Acts. Look at any issue of FEI's Briefing and you will see that all of our technical committees are very active and involved.
This is one way in which FEI works to represent the interests of its members. Committee members contribute generously of their time and effort for the benefit of all members and we owe them a debt of appreciation. I would welcome your comments.
P. Norman Roy President Financial Executives Institute