Collectively, the FAF trustees are responsible for the oversight, administration, and finances of both the FASB and its counterpart for state and local government, GASB.

Reducing FASB from seven members to five will be effective July 1, 2008. The changes approved by FAF also include broadening the current by-law requirement that FASB members possess investment experience, and changing FASB's agenda-setting process to a "leadership agenda process" whereby the FASB chair is vested with the authority to set the FASB project plans, agenda and priority of projects. FASB will retain the simple majority voting requirement.

The GASB changes include securing a stable and permanent funding source for the GASB, and changing the GASB's agenda-setting process to a "leadership agenda process" whereby the GASB chair is vested with the authority to set the GASB project plans, agenda and priority of projects. The trustees voted to retain the current size, term length, and composition of the GASB.

The vote followed a public due process period in which 59 comments were received from accounting and financial organizations and others interested in standard setting.

The resolutions adopted are available at www.fasb.org and www.gasb.org.

"The board's adoption of these proposals is a thoughtful and well-considered action necessary to ensure FAF's continued and enhanced ability to meet its responsibilities to the public through the development of transparent, high-quality financial reporting standards," said Robert Denham, chairman of the FAF Board of Trustees. "As the FAF moves forward with these changes, constituents will be regularly informed of all implementation plans so that they may continue to provide input."

As for the FAF itself, the board voted to expand the number and breadth of investors, accounting, business, financial and government organizations and entities invited to nominate FAF trustees; change the current term of trustees from one three-year term with a possible second three-year term to one five-year term; change the size of the board of trustees from a fixed 16 trustees to a flexible range of 14 to 18 trustees; and increase the trustee governance activities, including its level of formal review, analysis and oversight of the data and materials regularly provided by FASB, FASAC, GASB and GASAC.