NEWS RELEASE 08/24/10
Financial Accounting Foundation to Increase Size of FASB;Norwalk, CT,
August 24, 2010—The Board of Trustees of the Financial Accounting
Foundation (FAF) today announced that the Financial Accounting Standards Board
(FASB) will grow from five to seven members. The FASB previously operated with
seven board members from its inception in 1973 until 2008. In addition, Chairman
Robert Herz has decided to retire from the FASB after more than eight years
leading the standard-setting board. FASB member Leslie Seidman has been
appointed Acting Chairman, effective October 1, 2010.
Herz to Retire After More Than Eight Successful Years
Board to the seven-member structure will enhance the FASB’s investment in the
convergence agenda with the International Accounting Standards Board (IASB),
while addressing the unprecedented challenges facing the American capital
markets in the months and years ahead,” said FAF Chairman Jack Brennan. “The FAF
Trustees believe this is the right investment in the standard-setting process at
the right time that will enable it to accomplish the many duties that are so
critical to the organization’s constituents.” The transition to a seven-member
board will occur as soon as the process to recruit and evaluate candidates is
complete, which is expected in early 2011.
Mr. Brennan added: “On behalf
of the Board of Trustees and, especially, all investors and others affected by
the FASB’s work, I want to offer my sincere thanks to Bob Herz for his strong
leadership of the FASB in, arguably, the most challenging period in its history.
We greatly appreciate his service and congratulate him for a job well done.
Moving forward, we are very fortunate to have a highly respected, experienced
leader like Leslie Seidman to assume the duties of Acting
Robert Herz, Chairman of the FASB, said: “My more than eight
years as Chairman of the FASB have been among the most professionally
challenging and personally satisfying of my career. There are hundreds of people
I need to thank for their strong support and invaluable contributions to our
standard-setting activities. First and foremost, I offer my deep appreciation to
my fellow board members and our dedicated and talented staff. I’m very proud of
our accomplishments, and I’m confident the board will continue to successfully
meet the challenges ahead."
Ms. Seidman has been a FASB member since July
2003. She has also served the FASB in various staff roles. Prior to joining the
board, Ms. Seidman managed her own firm, providing consulting services to major
corporations, accounting firms and other concerns, and previously served as vice
president of accounting policy at J.P. Morgan & Company. Ms. Seidman started
her career as an auditor in the New York office of Arthur Young & Company
(now Ernst & Young LLP) and is a certified public
About the Financial Accounting Foundation
The FAF is responsible for the oversight, administration, and
finances of both the Financial Accounting Standards Board and its counterpart
for state and local government, the Governmental Accounting Standards Board. The
FAF also is responsible for selecting the members of both Boards and their
respective Advisory Councils.
About the Financial Accounting
Since 1973, the US Financial Accounting
Standards Board has been the designated organization in the private sector for
establishing standards of financial accounting and reporting. Those standards
govern the preparation of financial reports and are officially recognized as
authoritative by the Securities and Exchange Commission and the American
Institute of Certified Public Accountants. Such standards are essential to the
efficient functioning of the economy because investors, creditors, auditors and
others rely on credible, transparent and comparable financial information. For
more information about the FASB, visit its Website at www.fasb.org.