Financial Crisis Advisory Group (FCAG) Expresses Concerns

Concern was expressed in an April 29th letter intended for distribution to the leaders of the G-20 nations from the Financial Crisis Advisory Group (FCAG) regarding priorities of and pressures put upon both the FASB (Financial Accounting Standards Board) and IASB (International Accounting Standards Board) as it relates to the current financial crisis. The FCAG was recently created by the FASB and IASB as a temporary advisory group composed of senior leaders with broad international experience in financial markets. The FCAG’s major goals are to explore the standard-setting implications of the global financial crisis as well as potential changes to the global regulatory environment.

In the April 29th letter, the FCAG expressed concern about the pressures being imposed by G-20 policymakers on both the IASB and FASB to make progress on a wide range of issues, some of which are very complex. The FCAG believes the boards should focus their resources on only the commitments already made so as to not delay the most critical projects. The FCAG suggested that high priority should be given to work on the financial instrument and consolidation / derecognition projects. Valuation and off-balance sheet standards, they say, particularly need improvement. This focus, they believe, will provide the more significant, lasting global improvements.

The FCAG praised the work and cooperation of the two boards on a multitude of projects.