WASHINGTON (11/24/10)--The Financial Accounting Foundation (FAF) recently announced a new process for conducting post-implementation reviews of the accounting and financial reporting standards issued by the Financial Accounting Standards Board (FASB) and the Governmental Accounting Standards Board (GASB). FASB is responsible for developing and maintaining U.S. generally accepted accounting principles, which credit unions over $10 million in assets must comply with. The process will be independent of FASB and GASB’s current standard-setting processes and will ensure the continued autonomy of those standard-setting processes, the FAF added. FAF Chairman John Brennan said that the new post-implementation review process “strikes the appropriate balance” between ensuring the effectiveness of FASB and GASB and protecting their independence as standard setters. The process will also “provide a vitally important mechanism for obtaining ‘real world’ feedback and analysis on the application, usefulness, and effectiveness of standards set by our Boards,” Brennan added. The FAF reviewers will work to assess whether the standards set by FASB and GASB meet their intended financial reporting objectives, and will report their results to FAF Trustees and FAF President Teresa Polley. The FAF’s review staff will be comprised of current FASB and GASB staff. Initially, the reviewers will examine both a single FASB and GASB standard in order to test the review process. Testing of the FASB standard should be completed by mid-2011, according to the FAF. One of FASB’s standard setting goals is update to financial instrument accounting standards by requiring most financial assets and liabilities to be reported under Generally Accepted Accounting Principles (GAAP) at fair value. Credit unions over $10 million in assets are required to comply with GAAP, and would be required to comply with these changes. CUNA has opposed these changes, saying that the changes would provide no benefit to credit unions while substantially increasing their compliance costs. For the full FAF release, use the resource link.