Financial Accounting Standards Board
|Financial Accounting Standards Board (FASB)|
|Key People||Chairman Robert H. Herz|
The Financial Accounting Standards Board (FASB) is the official U.S.-based organization, recognized by the Securities and Exchange Commission (SEC) and the American Institute of Certified Public Accountants (AICPA), for determining standards of financial accounting and reporting amongst private corporations. The FASB is part of efforts to improve corporate reporting following the credit crisis.
The FASB was officially designated in 1973 as the U.S. body responsible for setting and improving accounting standards and reporting those to the SEC, which has the statutory authority to enforce such standards. Prior to its formation, accounting standards were proposed by the Accounting Principles Board and before that by the Committee on Accounting Procedure, each part of the AICPA. FASB members are selected by the Financial Accounting Foundation (FAF) and consulted with by Financial Accounting Standards Advisory Council (FASAC), which has around 30 members.
FASB Chairman Robert H. Herz was first appointed in 2002 ans reappointed to a second 5-year term in 2007. He was previously a senior partner with U.S.-based accounting giant PriceWaterhouseCoopers, where he was North America Theater Leader of Professional, Technical, Risk & Quality and a member of the firm's global and U.S. boards. Herz has also chaired the AICPA SEC Regulations Committee and the Transnational Auditors Committee of the International Federation of Accountants, and served as a part-time member of the International Accounting Standards Board.
The FASB in conjunction with the International Accounting Standards Board (IASB) recently formed the Financial Crisis Advisory Group (FCAG), an 18-member group charged with investigating the role financial reporting played in the recent credit crisis and corporate financial collapses. The FCAG has been given six months to complete its report, which will focus on the role of mark-to-market and off-balance sheet accounting played in precipitating the crisis.