In response to the Financial Accounting Standards Board’s recent invitation for stakeholders to comment on its standard-setting agenda, the American Bankers Association urged the board to explore opportunities outside of formal standard-setting that “meet investors’ needs while simultaneously reducing the strain on the board’s resources.”
In a recent letter, ABA said FASB’s work to proactively seek input from a broad spectrum of participants — including investors, preparers, auditors, academics and industry groups — reflects the group’s “strong commitment to accessibility and stakeholder engagement.” The letter also outlined ABA recommendation that FASB take into account other tools available within the broader U.S. disclosure framework.
“Companies already provide, and are expected to continue providing, decision-useful information to investors outside of the U.S. GAAP financials — such as through SEC filings (e.g., risk factors and management’s discussion and analysis), investor presentations, earnings calls, and direct communications with investor relations teams,” ABA wrote, noting that it believes “there are opportunities outside of formal standard setting to meet investors’ needs while simultaneously reducing the strain on the board’s resources.”
The association’s feedback identifies opportunities to more closely align underlying economics with accounting outcomes; opportunities to balance costs relative to benefits; and topic areas for which ABA does not believe a project should be added.
