Standard Setting Process in Trouble (Again): Commentaries

The Financial Accounting Standards Board (FASB) is trying to get the academic community involved with the standard-setting process through various initiatives. The FASB hopes that the Burton and Sack (1990) editorial will help to provide the necessary encouragement to prompt more individuals to participate in the FASB's process. The ability of academics to add objectivity and technical research would enhance the standard-setting process and the resulting standards. It is important to remember the strengths of the FASB, such extraordinary due process, open operations, independence, and diversity of backgrounds. The Financial Accounting Foundation Trustees' establishment of the Oversight Committee and its adoption of a super majority voting requirement do not evidence a lack of confidence in the FASB. They are totally consistent with the Trustees' explicit obligation of overseeing and improving the standard-setting process.