Academic journal article Journal of Accountancy

Allen Calls for a Restructured GASB

Academic journal article Journal of Accountancy

Allen Calls for a Restructured GASB

Article excerpt

Tom L. Allen, chairman of the Governmental Accounting Standards Board, said he has recommended a change in the composition and size of the GASB. Allen told attendees at the American Institute of CPAs Annual Accounting and Auditing Update Conference in Washington, D.C., that he would like to see one more member added to the board and a requirement for a two-thirds majority to approve a project or standard.

Allen said the current vote for approval--a simple three-to-two majority-was not significant enough a majority. "There have been instances when a GASB vote of three to two was reversed with one change of heart," said Allen. "GASB has received criticism about its voting process because governments do not want to have to incur the costs of complying with a new standard if the closest the board can come to agreement is three to tWO."

The five-member GASB board is composed of two local government preparers, one state auditor, a representative of the accounting profession and an academic (see chart, left). Allen said there were a number of organizations that he would like to see fill a sixth GASB seat, but it was likely the board would choose a representative from the National Association of State Auditors, Comptrollers and Treasurers, thus giving the GASB another state government representative. …

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