FINANCIAL ACCOUNTING FOUNDATION
401 MERRITT 7 PO BOX 5116, NORWALK, CT 06856 accountingfoundation.org,fasb.org,gasb.org

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Organizations Filed Purposes: ESTABLISH AND IMPROVE FINANCIAL ACCOUNTING AND REPORTING STANDARDS TO PROVIDE USEFUL INFORMATION TO INVESTORS AND OTHER USERS OF FINANCIAL REPORTS AND TO EDUCATE STAKEHOLDERS ON HOW TO MOST EFFECTIVELY UNDERSTAND AND IMPLEMENT THOSE STANDARDS.

THE MISSION OF THE FINANCIAL ACCOUNTING FOUNDATION (FAF) IS TO ESTABLISH AND IMPROVE FINANCIAL ACCOUNTING AND REPORTING STANDARDS, TO PROVIDE USEFUL INFORMATION TO INVESTORS AND OTHER USERS OF FINANCIAL REPORTS AND TO EDUCATE STAKEHOLDERS ON HOW TO MOST EFFECTIVELY UNDERSTAND AND IMPLEMENT THOSE STANDARDS. THE FAF, ORGANIZED IN 1972, IS THE INDEPENDENT, PRIVATE-SECTOR ORGANIZATION RESPONSIBLE FOR THE OVERSIGHT, ADMINISTRATION, FINANCING AND APPOINTMENT OF THE FINANCIAL ACCOUNTING STANDARDS BOARD (FASB) AND THE GOVERNMENTAL ACCOUNTING STANDARDS BOARD (GASB), WHICH WERE ESTABLISHED TO PERFORM DISTINCT FUNCTIONS IN THE PROCESS OF ESTABLISHING AND IMPROVING FINANCIAL ACCOUNTING AND REPORTING STANDARDS.

FINANCIAL ACCOUNTING STANDARDS BOARD (FASB)FINANCIAL ACCOUNTING STANDARDS ADVISORY COUNCIL (FASAC)ESTABLISHED IN 1973, THE FASB IS THE INDEPENDENT, PRIVATE-SECTOR ORGANIZATION, BASED IN NORWALK, CONNECTICUT, THAT ESTABLISHES FINANCIAL ACCOUNTING AND REPORTING STANDARDS FOR PUBLIC AND PRIVATE COMPANIES AND NOT-FOR-PROFIT ORGANIZATIONS THAT FOLLOW GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (GAAP). THE FASB IS RECOGNIZED BY THE SECURITIES AND EXCHANGE COMMISSION AS THE DESIGNATED ACCOUNTING STANDARD SETTER FOR PUBLIC COMPANIES. FASB STANDARDS ARE RECOGNIZED AS AUTHORITATIVE BY MANY OTHER ORGANIZATIONS, INCLUDING STATE BOARDS OF ACCOUNTANCY AND THE AMERICAN INSTITUTE OF CPAS (AICPA). THE FASB DEVELOPS AND ISSUES FINANCIAL ACCOUNTING STANDARDS THROUGH A TRANSPARENT AND INCLUSIVE PROCESS INTENDED TO PROMOTE FINANCIAL REPORTING THAT PROVIDES USEFUL INFORMATION TO INVESTORS AND OTHERS WHO USE FINANCIAL REPORTS. THE FINANCIAL ACCOUNTING FOUNDATION (FAF) SUPPORTS AND OVERSEES THE FASB. THE FOLLOWING ARE SOME SPECIFIC ACCOMPLISHMENTS AND INITIATIVES IN 2020 RELATED TO THESE AGENDA ITEMS AND IMPROVING GAAP IN GENERAL. HOWEVER, FOR A COMPLETE AND DETAILED PICTURE OF THE WORK OF THE FASB, CURRENT AND COMPLETED PROJECTS, TIMETABLES AND OTHER INFORMATION, PLEASE VISIT FASB.ORG. IN ADDITION, THE FAF ANNUAL REPORT PROVIDES A HIGHLIGHT OF FASB'S 2020 ACCOMPLISHMENTS AND CAN BE FOUND AT ACCOUNTINGFOUNDATION.ORG.THE FASB COMPLETED A VARIETY OF PROJECTS TO IMPROVE ASPECTS OF GAAP, ISSUING 11 FINAL ACCOUNTING STANDARDS UPDATES (ASUS) IN 2020. AMONG THE MOST SIGNIFICANT OF THESE WERE: AN ASU THAT DEFERRED THE EFFECTIVE DATES OF THE NEW INSURANCE STANDARD FOR ALL INSURANCE COMPANIES; AN ASU THAT SIMPLIFIED CERTAIN ASPECTS OF THE ACCOUNTING FOR COMPLEX FINANCIAL INSTRUMENTS THAT MAY CONTAIN BOTH LIABILITY AND EQUITY COMPONENTS; AN ASU THAT FACILIATED THE EFFECTS OF REFERENCE RATE REFORM ON FINANCIAL REPORTING; AND AN ASU THAT INCREASED TRANSPARENCY IN THE REPORTING OF GIFTS-IN-KIND BY NOT-FOR-PROFIT ENTITIES. THE FASB ALSO ISSUED 10 PROPOSED ASUS. THE MORE SIGNIFICANT PROPOSALS RELATED TO PROVIDING POTENTIAL PRACTICAL EXPEDIENTS IN ACCCOUNTING FOR SHARE-BASED PAYMENTS REVENUE BY NONPUBLIC ENTITIES AND IN ACCOUNTING FOR CERTAIN FEE REVENUE BY NONPUBLIC FRANCHISORS. FINALLY, THE FASB ISSUED A PROPOSED STATEMENT OF FINANCIAL ACCOUNTING CONCEPTS WITH IMPROVEMENTS TO THE DEFINITIONS OF THE VARIOUS ELEMENTS OF FINANCIAL STATEMENTS.THE PRIVATE COMPANY COUNCIL (PCC) CONTINUED ITS WORK WITH IMPROVEMENTS THAT ADDRESS THE NEEDS OF PRIVATE COMPANY USERS OF FINANCIAL STATEMENTS IN THE STANDARDS DEVELOPMENT PROCESS AND WERE INSTRUMENTAL IN ADVISING THE FASB ON A NUMBER OF ASUS. THE FASB CONTINUED WITH THE CONTINUED DEVELOPMENT OF THE GAAP FINANCIAL REPORTING TAXONOMY (TAXONOMY) FOR EXTENSIBLE BUSINESS REPORTING LANGUAGE (XBRL). DEPITE THE CHALLENGES RELATED TO THE COVID-19 PANDEMIC, OUTREACH AND OTHER STAKEHOLDER COMMUNICATIONS CONTINUED TO BE EXTENSIVE WITH NUMEROUS VIRTUAL MEETINGS WITH LIAISON GROUPS, REPRESENTATIVES OF USERS, PREPARERS, AND AUDITORS, AND OTHER STAKEHOLDERS. OUTREACH ACTIVITIES ALSO INCLUDES VARIOUS COMMUNICATIONS, EDUCATIONAL MATERIALS AND OTHER ACTIVITIES INCLUDING: - FASB MEMBERS AND STAFF DELIVERED SPEECHES AT 100 DIFFERENT CONFERENCES DURING THE YEAR - 48 PRESS RELEASES, MEDIA ADVISORIES AND TWEETS WERE SENT ON A VARIETY OF FASB STANDARD SETTING ACTIVITIES - 26 EDUCATIONAL WEBCASTS AND VIDEOS WERE PROVIDED.THE FASAC, WHICH COMPRISES 35 VOLUNTEER MEMBERS (WITH THE EXCEPTION OF ITS CHAIR, WHO IS COMPENSATED), REPRESENT A BROAD CROSS-SECTION OF THE FASB'S STAKEHOLDERS, MET FOUR TIMES IN 2020. THE PRIMARY FUNCTION OF FASAC IS TO ADVISE THE FASB ON ISSUES RELATED TO PROJECTS ON THE FASB'S AGENDA, POSSIBLE NEW AGENDA ITEMS, PROJECT PRIORITIES, PROCEDURAL MATTERS THAT MAY REQUIRE THE ATTENTION OF THE FASB, AND OTHER MATTERS AS REQUESTED.FASB'S OTHER ADVISORY GROUPS, INCLUDING THE INVESTOR ADVISORY COMMITTEE, THE NOT-FOR-PROFIT ADVISORY COMMITTEE, AND THE SMALL BUSINESS ADVISORY COMMITTEE, AND THE EMERGING ISSUES TASK FORCE ALL HELD MEETINGS IN 2020 TO SUPPORT THE EFFORTS OF THE FASB.

GOVERNMENTAL ACCOUNTING STANDARDS BOARD (GASB)GOVERNMENTAL ACCOUNTING STANDARDS ADVISORY COUNCIL (GASAC)ESTABLISHED IN 1984, THE GASB IS THE INDEPENDENT, PRIVATE-SECTOR ORGANIZATION, BASED IN NORWALK, CONNECTICUT, THAT ESTABLISHES FINANCIAL ACCOUNTING AND REPORTING STANDARDS FOR U.S. STATE AND LOCAL GOVERNMENTS THAT FOLLOW GAAP. THESE STANDARDS ARE RECOGNIZED AS AUTHORITATIVE BY STATE AND LOCAL GOVERNMENTS; STATE BOARDS OF ACCOUNTANCY; AND THE AMERICAN INSTITUTE OF CPAS (AICPA). THE GASB DEVELOPS AND ISSUES FINANCIAL ACCOUNTING STANDARDS THROUGH A TRANSPARENT AND INCLUSIVE PROCESS INTENDED TO PROMOTE FINANCIAL REPORTING THAT PROVIDES USEFUL INFORMATION TO TAXPAYERS, PUBLIC OFFICIALS, INVESTORS, AND OTHERS WHO USE FINANCIAL REPORTS. THE FINANCIAL ACCOUNTING FOUNDATION (FAF) SUPPORTS AND OVERSEES THE GASB. WHETHER SETTING NEW STANDARDS, IMPROVING EXISTING ONES, OR HELPING CONSTITUENTS TO IMPLEMENT AND UNDERSTAND THOSE STANDARDS, GASB'S AIM IS TO PROMOTE GREATER TRANSPARENCY, TO SUPPORT WELL-INFORMED DECISION MAKING, AND TO HELP USERS ASSESS A GOVERNMENT'S FINANCIAL ACCOUNTABILITY. FOR A COMPLETE AND DETAILED PICTURE OF THE WORK OF THE GASB, CURRENT AND COMPLETED PROJECTS, TIMETABLES AND OTHER INFORMATION, PLEASE VISIT GASB.ORG. IN ADDITION, THE FAF ANNUAL REPORT PROVIDES A DETAILED TIMETABLE OF GASB'S 2020 ACCOMPLISHMENTS AND CAN BE FOUND AT ACCOUNTINGFOUNDATION.ORG. BELOW ARE SOME OF THE KEY HIGHLIGHTS IN 2020. IN 2020, GASB ISSUED SIX FINAL STATEMENTS, ONE TECHNICAL BULLETIN, ONE FINAL IMPLEMENTATION GUIDE, FOUR EXPOSURE DRAFTS OF PROPOSED STATEMENTS, ONE EXPOSURE DRAFT OF A PROPOSED CONCEPT STATEMENT, ONE EXPOSURE DRAFT OF A PROPOSED TECHNICAL BULLETIN, ONE EXPOSURE DRAFT OF A PROPOSED IMPLEMENTATION GUIDE, AND ONE PRELIMINARY VIEWS DOCUMENT.WHILE THE MAJORITY OF ITS TIME IS DEVOTED TO DEVELOPING ACCOUNTING AND FINANCIAL REPORTING STANDARDS, THE GASB STAFF ALSO HELPS STAKEHOLDERS UNDERSTAND AND IMPLEMENT STANDARDS BY PROVIDING THEM WITH DIRECT ASSISTANCE ADDRESSING THEIR SPECIFIC FACTS AND CIRCUMSTANCES. OUTREACH AND OTHER STAKEHOLDER COMMUNICATIONS CONTINUED TO BE EXTENSIVE WITH NUMEROUS MEETINGS WITH LIAISON GROUPS AND INTERACTIONS WITH REPRESENTATIVES OF GASB'S THREE PRIMARY STAKEHOLDER GROUPS (USERS, PREPARERS, AND AUDITORS). DESPITE THE CHALLENGES RELATED TO THE COVID-19 PANDEMIC, GASB MEMBERS AND STAFF DELIVERED VIRTUAL SPEECHES AT 97 DIFFERENT CONFERENCES DURING THE YEAR. THE GASB ISSUED 23 PRESS RELEASES AND MEDIA ADVISORIES DURING THE YEAR. IN ADDITION, TWEETS WERE SENT ON A VARIETY OF GASB STANDARD SETTING ACTIVITIES AND THE GASB OFFERED 7 EDUCATIONAL WEBCASTS AND 15 VIDEOS. THE THIRTY-ONE MEMBER GASAC IS AN ORGANIZATION OF KNOWLEDGEABLE AND EXPERIENCED PROFESSIONALS REPRESENTING THE GASB'S VARIED STAKEHOLDERS WHO VOLUNTEER THEIR SERVICES TO WORK WITH THE GASB IN AN ADVISORY CAPACITY TO ENHANCE THE STANDARD SETTING PROCESS BY CONSULTING WITH THE GASB ON TECHNICAL ISSUES, PROJECT PRIORITIES, AND OTHER MATTERS LIKELY TO CONCERN THE GASB. IN 2020, THE GASAC HELD THREE MEETINGS.

PUBLISHING PUBLISHING REPRESENT THE DISTINCT ACTIVITIES OF PUBLISHING AND DISTRIBUTING THE FASB AND GASB STANDARD-SETTING MATERIALS. THE FAF LICENSES THE CONTENT OF THE FASB ACCOUNTING STANDARDS CODIFICATION (FASB CODIFICATION) TO COMMERCIAL PUBLISHERS AND OTHERS FOR SPECIFIC USES. THE FASB CODIFICATION ALSO IS DIRECTLY ACCESSIBLE THROUGH AN ONLINE PLATFORM AND CAN BE VIEWED EITHER THROUGH A FREE BASIC VIEW OR AS AN ANNUAL PAID SUBSCRIPTION TO THE PROFESSIONAL VIEW THAT PROVIDES ADVANCED FUNCTIONALITY AND NAVIGATION. THE FAF ALSO SELLS A BOUND EDITION OF THE FASB CODIFICATION AND PROVIDES THE FASB SUBSCRIPTION, AN ANNUAL PAID SERVICE THAT INCLUDES THE DISTRIBUTION OF PRINTED COPIES OF FASB ACCOUNTING STANDARDS UPDATES (ASUS) WHEN ISSUED. THE FAF LICENSES GASB MATERIALS TO COMMERCIAL PUBLISHERS AND OTHERS FOR SPECIFIC USES. GASB MATERIALS ARE ALSO DIRECTLY ACCESSIBLE ONLINE THROUGH THE GOVERNMENTAL ACCOUNTING RESEARCH SYSTEM (GARS). GARS ONLINE CAN BE VIEWED EITHER THROUGH A FREE BASIC VIEW OR AS AN ANNUAL PAID SUBSCRIPTION TO THE PROFESSIONAL VIEW THAT PROVIDES ADVANCED FUNCTIONALITY AND NAVIGATION. GASB MATERIALS ALSO ARE AVAILABLE THROUGH VARIOUS SUBSCRIPTION PLANS SOLD DIRECTLY BY THE FAF, INCLUDING THE GASB SUBSCRIPTION (CONSISTING OF FINAL DOCUMENTS AS ISSUED) AND THE GASB BOARD PACKAGES. IN ADDITION, THE FAF SELLS BOUND EDITIONS OF THE GASB CODIFICATION, GASB ORIGINAL PRONOUNCEMENTS, AND THE GASB COMPREHENSIVE IMPLEMENTATION GUIDE, AS WELL AS HARD COPIES OF INDIVIDUAL PRONOUNCEMENTS, USER GUIDES, RESEARCH REPORTS, AND OTHER DOCUMENTS.THE FAF CONTINUED ITS MULTI-YEAR CONTENT, VISION, & ENABLEMENT (CVE) INITIATIVE. THE CVE INITIATIVE BEGAN WITH THE OBJECTIVE OF MODERNIZING THE PRODUCTION AND DISTRIBUTION OF FASB AND GASB STANDARDS. THE PROJECT HAS THREE COMPONENTS: 1) FINALIZE AND OPERATIONALIZE THE ORGANIZATION'S CONTENT STRATEGY, 2) IMPLEMENT A NEW PUBLISHING PLATFORM, AND 3) REDESIGN THE BUSINESS PROCESSES UNDERPINNING OUR CONTENT CREATION, PRODUCTION, AND DISTRIBUTION.THE INITIAL DISCOVERY AND SOLUTION SELECTION PHASE OF THE CVE INITIATIVE WAS COMPLETED DURING 2019. THE FOUNDATION AND DESIGN PHASE BEGAN IN LATE 2019 AND WAS COMPLETED IN EARLY 2021. THE INITIATIVE IS EXPECTED TO BE COMPLETED IN 2022.

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