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Abstract
The Financial Accounting Foundation (FAF) and the Financial Accounting Standards Board (FASB) were established concurrently to allow standards setting to remain in the private sec tor while freeing the process from undue influence by both the corporate community and the major audit firms.4 Under the new structure, the FAF would be led by Trustees who would be solely responsible for the appointment of seven individuals to the FASB. The FASB Board members, while representative of the full complement of financial reporting constituencies, would sever ties to their former employers and serve full-time at the FASB. [...]they would not need to be CPAs, thus allowing representatives from the investor community to have a role in standards-setting. [...]members of the Emerging Issues Task Force (which also authors consensus opinions on GAAP that are subject to ratification by the FASB) are not appointed by the FAF, nor are the members of other advisory groups to the FASB or GASB. ● Oversee the activities of the FASB and GASB, including their due process; the post-issuance evaluation of the effectiveness of standards; their performance in the context of their respective missions. The objective is to populate the Board of Trustees with "individuals with business, investment, capital markets, accounting, accounting and business education, financial, government, regulator, investor advocate or other experience" who are committed to advancing the mission of the FAF.