Did You Know that the FASB Wants to Hear From You?

Michaela McGinn | June 5th, 2013

Let’s face it—opinions matter. We all like to be asked for our opinion. And more often than not, opinions help shape decisions and the direction that a group of people may take.

Clients frequently mention that they wish someone had asked their opinion when they hear about a new accounting standard. In actuality, their opinion is asked. Before any new accounting standard is accepted an Exposure Draft of the accounting pronouncement is issued and there is a comment period for anyone to chime in. Just recently, a new Exposure Draft for accounting for leases was released. The Financial Accounting Standards Board (FASB) is accepting comments through Sept. 13, 2013.

Feedback to FASB

Many people may think their opinion isn’t important. But it is. This is the second draft of this standard due to all the comments received after the issuance of the first draft. FASB wants to hear from everyone, but in many ways it is the comments from the business owner that can hold the most weight. You are the people that are most impacted by these changes. Sure, the accountants have to make sure the standard is properly implemented, but they are your financial statements. Your accounting system will have to be modified or updated to properly account for the changes.

In the case of the new standard on leasing, these changes are a major overhaul to the way leases are accounted for. The primary standard currently utilized was first issued in 1976. The new standard is full of changes and some complex accounting. It is expected to impact any company that has leases. So it is a perfect time to let your voice be heard. Speak up. The FASB is listening.

Need Help?

If you want to learn more about how you can weigh-in on these standards, contact Rea & Associates. The audit services team can help you understand how you can provide feedback to the FASB on drafts of standards.

 

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