Areas within the Financial Crisis Advisory Group scope
The advisory group considered how improvements in financial reporting could help enhance investor confidence in financial markets. The advisory group also helped identify significant accounting issues that require the urgent and immediate attention of the boards, as well as issues for longer-term consideration.
In providing that advice, the advisory group drew upon work that was already under way in a number of jurisdictions on accounting and the credit crisis, as well as information gathered from the public round-tables meetings - one each in Asia, Europe, and North America - that the boards hosted in November and December.
The advisory group was invited to discuss, among other issues, the following:
- Areas where financial reporting helped identify issues of concern, or created unnecessary concerns, during the credit crisis.
- Areas where financial reporting standards could have provided more transparency to help either anticipate the crisis or respond to the crisis more quickly.
- Whether priorities for the IASB and the FASB should be reconsidered in light of the credit crisis.
- Potential areas that require the attention of the IASB and the FASB in order to avoid future market disruption.
- The implications of the credit crisis for the interaction between general-purpose financial reporting requirements for capital markets and regulatory reporting, particularly for financial institutions.
- The relationship between fair value and off-balance sheet accounting and the current crisis, both during and leading up to the crisis.
- The findings and relevance of conclusions of various studies under way, including the US Securities and Exchange Commission study under the Emergency Economic Stabilization Act of 2008.
- The need for a due process for accounting standard-setters and its implications for resolving emergency issues on a timely and inclusive basis.
- The independence of accounting standard-setters and governmental actions to the global financial crisis