While watching an FASB meeting (on-line) and searching for the related meeting materials, I stumbled upon an interesting page – an FASB website area dedicated to explaining their activities to investors/financial statements users, including a request for comments and inquiries from those investors/financial statement users.
On their site, the FASB has a page titled, Investors Help Us Improve Financial Performance. On that page, the FASB has a short video outlining the importance of investor input on their standard-setting process and a list of FAQs:
- Why are FASB accounting standards important for investors?
- What does the FASB want to hear from investors?
- What type of investor does the FASB want to hear from?
- How does the FASB consider investor perspectives?
- How can I find out what projects the FASB is working on?
- How does the FASB obtain investor perspectives?
- How can I provide comments or participate?
Each question is addressed briefly and, where further information would be helpful, the FASB includes links to the appropriate website area containing the additional information.
The investor page also includes an Investor Interest Form. On that form, an investor can submit questions or comments about FASB’s activities directly to the Board.
Comments from investors are crucial to the FASB’s activities. After all, as noted in their conceptual framework, “existing and potential investors, lenders, and creditors” as the “primary” users of financial reporting information.
Yet, as a former FASB staffer (1984-1987), I know that one of the Board’s major challenges is receiving project-related input from a broad range of financial statement users; sell-side investors, buy-side investors, large institutional investors, and smaller investor organizations and individuals.
I applaud their continued effort to promote more feedback from individual investors and investing organizations.