FASAB’s three-year plan: spotlight on climate-related financial reporting
The US Federal Accounting Standards Advisory Board (FASAB) has unveiled its three-year plan, providing a comprehensive roadmap for upcoming initiatives. Detailed in the annual report, FASAB outlines significant accomplishments, exposure drafts, and future directions.
The report reflects FASAB’s engagement throughout the year, showcasing the board’s efforts in projects and stakeholder interactions. Notably, the report highlights the culmination of over 12 years of deliberations and collaboration with the federal community, leading to the implementation of SFFAS 54, Leases, at the start of fiscal year 2024.
Beyond leases implementation, the report touches upon other pivotal projects, including climate-related financial reporting, land implementation, public-private partnerships, and software technology. FASAB’s commitment to outreach and training is also emphasised, acknowledging the staff’s contribution to valuable training sessions and hybrid board meetings.
One of the notable projects in FASAB’s agenda is the climate-related financial reporting initiative. The project aims to guide reporting entities in accounting for and reporting the financial impact of climate-related events and risks in federal financial reports. Divided into two phases, the first phase involved the development of a non-authoritative staff education paper identifying current guidance for agencies. As of September 2023, the Board completed research on using the Task Force on Climate-related Financial Disclosures (TCFD) recommendations as a model for the federal climate-related financial disclosure framework.
FASAB invites stakeholder input on the three-year plan by 18 January 2024 to identify opportunities for enhancing FASAB guidance. The report underscores the importance of stakeholder feedback in shaping consistent decisions across related projects.
Read the report here.
