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Tag: Bob Herz

Accounting News Roundup: KPMG’s Hiring Spree in Europe; Herz Gets Nostalgic; Stalemate on Estate Tax Could Benefit States | 10.05.10

KPMG joins Big Four hiring spree [FT]
The FT gives us the scoop on the Radio Station hiring bonanza in Europe (if you’re experienced go here), “KPMG is hiring 8,000 new staff across Europe over the next three years, signalling a recovery in the corporate services industry.

The hiring includes 3,000 staff in Britain, even though the UK government has pledged to cut its consultancy bill amid growing public unease over the billions of pounds spent on professional fees in the past decade.

The recruitment drive will take KPMG’s workforce from 30,0Europe, excluding France and Italy, and from 11,000 to 14,000 in the UK. KPMG also has ambitious hiring plans in France and Italy.

The corporate services industry had been hit by the global downturn, with the Big Four accountancy firms – KPMG, Ernst & Young, PwC and Deloitte – criticised for their role in signing off financial statements stuffed with assets that plummeted in value during the crisis.”

After Eight Years at FASB, Herz Looks Back [CFO]
Q&A with the man himself. Can you guess which accounting pronouncement he’s a big fan of?

Two Accounting Firms To Pay $1.7 Million To Settle CFTC Charges [Dow Jones]
“The charges stemmed from audits of Sentinel that were conducted between 2004 and 2006. The firms, McGladrey & Pullen LLP and Altschuler, Melvoin & Glasser LLP, agreed to pay $400,000 and $800,000, respectively, in restitution to Sentinel’s customers who suffered losses as a result of the Illinois-based futures commission merchant’s bankruptcy.

They were also required to pay civil monetary penalties of $150,000 and $350, 000, respectively, according to an order that was filed Monday. McGladrey & Pullen acquired assets related to Altschuler, Melvoin & Glasser’s audit practice in 2006.”

Ex-SocGen Trader Kerviel Convicted of Trading Fraud [WSJ]
” Paris court sentenced former Société Générale trader Jérôme Kerviel to three years in prison for his role in one of the biggest trading scandals in history, ordering him to repay a whopping €4.9 billion ($6.69 billion) loss suffered by the French bank.”

Investor Feedback Summary May Foretell FASB Retreat [Compliance Week]
“The Financial Accounting Standards Board may be sending up a smoke signal with an unusual missive describing how investors aren’t entirely in love with the board’s proposed new rules on financial instruments.

The board published a nine-page description of its interaction with investors regarding the FASB’s controversial proposal to call for more fair value in accounting for financial instruments. It opens with a reminder that FASB writes accounting rules to assure that financial statements produce information useful to investors, then explains how investors are reacting to the proposal when the board conducts face-to-face meetings with investors.”


State Estate Taxes: Windfall Gold in Expiring Tax Cuts [TaxVox]
States make out pret-tay well if Congress bumbles the estate tax.

U.S. hits AmEx with antitrust suit [WaPo]
“The Justice Department announced Tuesday that it had filed an antitrust suit against American Express for preventing retailers from offering customers discounts for using rival credit cards with lower processing fees.

Federal officials added that they had reached a proposed agreement with Visa and MasterCard over the matter.

The issue of ‘swipe fees’ has long been a thorn in the side of the retailing industry, which complained that it has little power to inform customers of the differences in card costs. In its complaint, the Justice Department estimated that the fees cost merchants $35 billion each year – resulting in higher prices for shoppers.”

LinkedIn and PwC Launch Breakthrough Career Mapping Tool for College Students [PR Newswire]
“LinkedIn, the world’s largest professional network with more than 80 million members globally, today launches Career Explorer in collaboration with PwC US, one of the largest employers of college graduates in the United States. The new LinkedIn Career Explorer tool provides current college students with unique, data-driven insights to help them build their careers.”

A Shift at the Top of Twitter [DealBook]
“Evan Williams, the co-founder and chief executive of Twitter, is stepping down to lead product strategy at the company, Twitter announced on Monday. Dick Costolo, the chief operating officer, will succeed Mr. Williams.”

“Robert Herz has had a more interesting career than any accountant deserves.”

We probably don’t need to remind you that today is Bob Herz’s last day at the FASB. It’s a sad day indeed for many that have been addressing their poignant comment letters to Roberto for the last eight years.

How Herz is celebrating his last day up in Norwalk isn’t immediately known but we’re sure it involves making crank calls to the American Bankers Association, Barney Frank’s face on a dartboard and plenty of cake.


Not so surprisingly, there’s not much mention of Bob’s last day out there except for cheeky article over at the Economist that informs us of precisely nothing new but manages to give Bob a backhanded compliment and take a major swipe at every single accountant on Earth:

Robert Herz[…]has had a more interesting career than any accountant deserves. He began his tenure as chairman of America’s Financial Accounting Standards Board (FASB) in 2002, dealing almost immediately with the fallout from the Enron and WorldCom scandals, which had been abetted by accountants. He was due to end it on October 1st, a sudden departure for undefined personal reasons, after a crisis also partly pinned on the profession.

Accountants “deserve” boring careers? Their choice of a profession automatically merits a long drab livelihood that involves choice of pen color, whether or not to upgrade the 10-key calculator on their desk and auditing Excel formulas? Forget about the rest of us for a minute; there are people who are ashamed to share humanity with Herz. It’s the man’s last day. Way harsh, Economist.

Beancounter there, done that [The Economist]

You’d Be Wrong if You Thought Bob Herz Was Coasting into Retirement

Just because Golden Boy is assuming Roberto’s seat on Friday, don’t think Herz is spending his final days as the FASB Chairman perusing the web for the latest D-list celebrity sex tape:

The International Accounting Standards Board (IASB) and the US Financial Accounting Standards Board (FASB) today announced the completion of the first phase of their joint project to develop an improved conceptual framework for International Financial Reporting Standards (IFRSs) and US generally accepted accounting practices (GAAP).

The objective of the conceptual framework project is to create a sound foundation for future accounting standards that are principles-based, internally consistent and internationally converged. The new framework builds on existing IASB and FASB frameworks. The IASB has revised portions of its framework; while the FASB has issued ‘Concepts Statement 8’ to replace ‘Concepts Statements 1 and 2’.

This first phase of the conceptual framework deals with the objective and qualitative characteristics of financial reporting. As part of the consultation process, the IASB and FASB jointly published a discussion paper and exposure draft that resulted in more than 320 responses.

Along with the heavy lifting that comes with the FASB chairmanship, we imagine Herz is also doing some reflecting this week as his tenure comes to an end. You know, reading some of his favorite comment letters and drafting a farewell/thanks for all the good times email to Barney Frank and the ABA. Stuff like that.

IASB and US FASB Complete First Stage of Conceptual Framework [Business Wire]

Russell Golden to Fill Bob Herz’s Seat on FASB; Chairmanship Next?

Directly from the mouths of babes in Norwalk:

The Board of Trustees of the Financial Accounting Foundation (FAF) today announced the appointment of Russell G. Golden to the Financial Accounting Standards Board (FASB), effective October 1, 2010. Mr. Golden will fill the board member vacancy on the FASB resulting from the retirement of Robert H. Herz on September 30, 2010. Prior to his appointment, Mr. Golden served as technical director of the FASB.


Whether or not this is a pit stop for Russ on the way to the Chairmanship remains to be seen. Leslie Seidman is taking the “acting” role on October 1st and as the PCAOB has shown, that can last for awhile.

Mr. Golden’s initial term on the FASB will extend to June 30, 2012, the expiration date of the term left vacant by Mr. Herz’s retirement. As technical director of the FASB, Mr. Golden held primary responsibility for overseeing FASB staff work on all standards-setting projects, including major global and domestic projects and technical application and implementation of financial accounting and reporting standards. He also served as chair of the FASB’s Emerging Issues Task Force (EITF).

“We are delighted to appoint Russ to the FASB,” said FAF Chairman John Brennan. “The FASB will be served well by his depth of technical knowledge in accounting, intimate familiarity with the projects on the board’s technical agenda, and his proven track record for reaching out to constituents and evaluating all available input when approaching financial reporting issues, solutions and improvements.”

Mr. Golden assumed his role as technical director of the FASB in June of 2008, and before that served in various roles at the FASB as a member of the senior staff. Previous to his tenure at the FASB, Mr. Golden was a partner at Deloitte & Touche LLP in the National Office Accounting Services department. Mr. Golden earned his Bachelor’s degree from Washington State University. He is a licensed CPA in the states of Washington and Connecticut.

As announced by the FAF Trustees on August 24, 2010, the FASB will return to a seven-member structure. The Board of Trustees is engaged in processes to recruit and evaluate candidates for the two additional seats and to evaluate candidates for appointment as FASB Chairman. FASB member Leslie F. Seidman will assume the role of Acting Chairman as of October 1, 2010, as previously announced. More details about the search process are discussed in a Q&A with Mr. Brennan.

While Mr. Golden was expected to be appointed to the board, rumors are that he won’t be the next Chairman of the FASB. Some people are saying that it is most likely that Leslie Seidman will get the “acting” dropped from her title or it will be one of the two new members that have yet to be appointed.

Financial Accounting Foundation Appoints Russell G. Golden to the Financial Accounting Standards Board [Business Wire]

Accounting News Roundup: Golden a Leading Candidate to Become Next FASB Chair; Europe Gives PCAOB the Go-Ahead for Inspections; Accountant Busted for Scalping U.S. Open Tickets | 09.03.10

Numbers Cop: FASB Staffer a Leading Candidate for Board [WSJ]
“The foundation that oversees the Financial Accounting Standards Board is considering Russell Golden, the board’s technical director, for the board post, these people said, although they cautioned that no final decision has been made. The chairman’s position would remain unfilled, they said, noting that the search process for a new chairman is at an early stage.

A spokesman for FASB declined to comment. Mr. Golden couldn’t be reached to comment.

The foundation has leaned toward an internal candidate because it would allow FASB to largely continue its work uninterruptedts at the end of the month. Mr. Golden already is involved with the board’s many projects.”

U.S. Companies Added 67,000 Jobs in August [Bloomberg]
“Companies in the U.S. added more jobs than forecast in August, easing concern the economy was falling back into recession.

Private payrolls that exclude government agencies climbed 67,000, after a revised 107,000 increase in July that was more than initially estimated, Labor Department figures in Washington showed today. The median estimate of economists surveyed by Bloomberg News called for a gain of 40,000. Overall employment fell 54,000 for a second month and the unemployment rate rose to 9.6 percent as more people entered the labor force.”

Tax-fraud conviction voided because judge didn’t stop trial to let defendant go to son’s deathbed [Los Angeles Times]
“A federal judge’s refusal to halt a businessman’s tax-fraud trial so he could be at his son’s deathbed was cause to overturn the businessman’s conviction, an appeals court has ruled.

U.S. District Judge Dale S. Fischer also prejudiced the case against Garth Kloehn by failing to inform the jury that he was absent for the final day of trial because his son had died, the appeals panel said. Fischer told the jury that Kloehn “has a right not to be here,” possibly leaving jurors with the impression he was showing a lack of respect for the court, the judges said.

Kloehn was the sole defense witness in his 2005 trial in downtown Los Angeles on charges of failing to report $1.2 million in income. He left the courtroom after testifying to catch a flight to Las Vegas to see his cancer-stricken son, leaving no one to rebut the prosecution’s final testimony. Kloehn arrived at the Las Vegas hospital one hour before 45-year-old Kevin Kloehn died.”

Transparency and the I.R.S. [NYT]
Someone – namely Christopher Bergin, the publisher of Tax Analysts – isn’t convinced that the IRS is serious about transparency. So much so, he wrote the Times and they seemed impressed so they published his letter.

Europe greenlights US audit inspections [Accountancy Age]
“S audit regulators will be able to inspect European firms after the European Commission cleared the way for access to confidential papers, in a move which could allow Lehman Brothers investigators to follow up leads in London.

The European Commission said it will now share internal working documents with audit watchdogs in the US and Australia. The move breaks an impasse which had emerged between US and EU authorities over the sharing of confidential internal audit inspection papers, retained by regulators when they inspect audit firms.”


Better accounting for small businesses [WaPo]
Another letter to the editor, this time pointing out that small businesses shouldn’t be complaining about issuing 1099s to vendors if they have any semblance of an accounting system.

Accountant arrested for scalping U.S. Open tickets had 339 spots to sell worth $10,000: Prosecutors [NYDN]
For some reason, Marvin Schaffer had 28 parking permits for Jets games.

Tom Boniface Joins PricewaterhouseCoopers LLP in New York as Co-Leader of Indirect Tax Practice [PR Newswire]
“PricewaterhouseCoopers (PwC) announced today that Tom Boniface has joined the firm as co-leader of PwC’s Indirect Tax practice, focusing on value added taxes (VAT) and based in the New York office.

Boniface is well versed in the various indirect tax regimes around the world, such as European VAT, Canadian and Australian GST, Brazilian ICMS and Japanese consumption tax. He brings over 15 years of experience serving U.S.-headquartered Fortune 100 and middle-market companies.

Boniface, who most recently led the consumption practice at another major accounting firm, has a B.S. in Accounting from the State University of New York at Oswego. He is a Certified Public Accountant in New York State.”

Tax Profs for the Ground Zero Mosque [TaxProf Blog]
“While the First Amendment is directed at government interference with speech, press and religion, it exists to guard against the danger that an angry and fearful majority will undermine those cherished rights. Thus even in the absence of government interference, it is incumbent upon us to stand with those seeking to exercise those rights in the face of heated public opposition. Unfortunately, with the notable exception of Mayor Michael Bloomberg, there have been few profiles in courage on this issue”

Accounting News Roundup: Deloitte Poised to Be the Biggest of the Big 4; A Guide to Avoiding Layoffs; Forensic Accountant Testifies That Stanford Skimmed Funds | 08.26.10

~ Sorry about the downtime yesterday. Our best people are on it like ConEd.

Deloitte to be world’s biggest accountant as partners sweep up £590m [Telegraph]
“According to Mr Connolly, when Deloitte publishes its global results in October the firm is set to reveal it has overtaken PriceWaterhouseCoopers to become the biggest of the “Big Four” accountancy houses globally.

However, Mr Connolly, who is set to retire in 2011, predicted the current financial year could prove even more successful despite describing future growth in the wider economy as ‘low and slow.’ ‘We have alrin the first quarter of this year, so I expect we shall return to double-digit growth. The M&A market has started to get much busier and our tax business is growing well again. Changes in regulation also mean good business for us.’ “

Investors Gain New Clout [WSJ]
“In a decision years in the making, the SEC voted 3-2 in favor of the “proxy access” rule, which requires companies to include the names of all board nominees, even those not backed by the company, directly on the standard corporate ballots distributed before shareholder annual meetings. To win the right to nominate, an investor or group of investors must own at least 3% of a company’s stock and have held the shares for a minimum of three years.

Currently, shareholders who want to oust board members must foot the bill for mailing separate ballots, as well as wage a separate campaign to woo shareholder support. Both are too costly and time-consuming for most. Now, the targeted companies will essentially be footing the bill for the dissidents, including them in the official proxy materials. The new rule will be in place in time for the 2011 annual meeting season next spring.”

Celgene names new chief financial officer [Reuters]
Jacqualyn Fouse will replace David Gryska effective Sept. 27

Herz Resigns As FASB Chair [The Summa]
Professor David Albrecht’s take on Roberto Herz’s decision to step down.

3Par Accepts Dell’s Increased Takeover Offer [Bloomberg]
“Dell Inc. said 3Par Inc. has accepted its increased offer of $24.30 per share in cash, or about $1.6 billion, net of 3Par’s cash.”


Dodging the Ax: How to Avoid Layoffs [FINS]
“As professionals working in financial-services witness the ax drop around their companies, many are living in fear that they could be included in the next round of layoffs. However, there are measures you can take right away to help safeguard your position and make you seem indispensable to management.”

Stanford Used Skimmed $1.6 Billion For Loans To Start-Ups, Witness Says [Bloomberg]
“The $1.6 billion that indicted financier R. Allen Stanford is accused of skimming from the funds of his investors was actually loaned by his Antiguan bank to start-up entities and other businesses he controlled, a fraud examiner testified.

Forensic accountant Alan Westheimer testified before a U.S. judge in Houston today that Stanford Financial Group Cos. comptroller Mark Kuhrt and chief accountant Gilbert Lopez told him they believed the borrowing should have been publicly disclosed.

‘The funds were being passed through as inter-company loans to the entities that were the recipients of the shareholder loans,’ Westheimer said. ‘Within a short period, usually six months, Mr. Stanford would assume those loans and the recipient companies transferred those balances to their underlying capital.’ “

Stephen Chipman’s Toast to Bob Herz

“Bob Herz led the FASB during the most challenging time in its history,” said Grant Thornton LLP CEO Stephen Chipman. “He has been a tireless leader with an unwavering focus on the users of financial statements and we are grateful for his service to the profession and wish him well in his retirement. We also extend our congratulations to Leslie Seidman as she takes up the mantle as acting chairman and stand ready to help her and the FASB establish accounting standards that are right for the marketplace and for the dynamic organizations [Ed. note: they’re part of the new strategy, as you may recall] we serve.”


Trite statement as it may be, at least SC said something (we’re looking straight at you Veihmeyer, Moritz, Salzberg, Howe).

Grant Thornton LLP CEO statement regarding Bob Herz retirement [GT]

Who Will Replace Bob Herz as FASB Chairman?

Yesterday we learned that FASB Chair Bob Herz would be ending his spectacular 8 year run as the head of our favorite accounting standards setting agency.

What we have not learned is who will be replacing him permanently when he escapes next month. In the interest of helping FASB come up with a qualified replacement, we have a few suggestions. Do we need to submit these in comment letter form or can someone just email over for us?


Patrick Byrne Listen, we know there’s something just not right about the guy and it’s entirely possible that he lacks the actual paper qualifications required of the FASB chair. But to his credit, he can do wonders with financial reporting, especially when it comes to using magical fantasy models very similar to FASB’s own mark-to-Disneyland initiatives. He’d be great for coming up with all sorts of helpful guidance (except when it comes to internal control, he might have to contract out to the IASB on that one) and if the IASB decides to get too lippy, Byrne can simply send Judd Bagley after Tweedie’s ass to “straighten him out,” ifyoufeelme.

Willie Nelson Okay, so we’re pretty sure you have to take a drug test before you’re allowed to run the FASB but assuming Willie can get his hands on some goldenseal, we think we have a winner here. He’s laid back enough to handle hard ribbings by Barney Frank in the event of another bank accounting debacle and who knows, we could put off convergence another 15 years if we can send Nelson over to the IASB with some goodies. They’ll be too busy watching Chapelle’s Show and hunting down Doritos to start messing with the sanctity of GAAP. Win.

The hot chick who got fired from PwC Let’s be real about it, the FASB chairman job used to be an esteemed position but now that we’re trudging ever-forward towards convergence (or, rather, total IASB domination), we don’t actually need anyone with more than half a brain in that position. So why not offer hot chick a job? Qualifications include: standing there looking pretty, keeping your trap shut and ignoring Tweedie’s midnight sexting.

If you have a suggestion, why not let us know? We’ll be sure to include it as an aside in our next comment letter. Whoever they get, can we please PLEASE make sure they slightly more photogenic than our buddy Bob? Seriously, we’re going to miss you, Herz, but man did you make us all look bad.

Accounting News Roundup: Herz Departure Is a Gift for Banks; American Apparel Blames Deloitte for Late Filings; Your Commute Isn’t That Bad | 08.25.10

Herz Leaving Marks Boon for Banks [WSJ]
“A new front has opened up in the war over mark-to-market accounting. Suddenly banks find themselves with an unexpected advantage in the fight over how they should value their vast holdings of financial instruments.

Trprise announcement Tuesday of the departure of Robert Herz as chairman of the Financial Accounting Standards Board. This will give banks an opportunity to push for a successor who is more friendly to their views on the mark-to-market question, as well as the overall idea that accounting should be for more than just investors.”

Former Chief Accounting Officer for Beazer Homes USA, Inc. Indicted on 11 Criminal Counts [FBI]
Michael Rand didn’t have a very good day yesterday.

Block ramped up federal lobbying efforts in second quarter, report says [AP]
H&RB lobbied their asses off from April to June spending $500k talking the ears off at the IRS, Treasury and SEC.

American Apparel Works To File Late 10-Q Before Nov 15 [Dow Jones]
The NYSE has put Dov & Co. on notice that they best get their act together if they don’t want to be sent slumming with the pink sheets. The company is promising to pull things together and if it weren’t for Deloitte quitting, everything would be a-okay.

Fact Checking Minority Leader Boehner’s Claims on “Small Business” and the “Bush” Tax Cuts [Tax Foundation]
In case you didn’t hear, John Boehner suggested that the President fire his entire economic team. Boehner is of the opinion that letting the tax cuts expire will hurt small businesses, citing the Joint Tax Committee. Tax Foundation takes exception with this, saying that the Ohio Congressman and House Minority Leader is misrepresenting the findings of the JTC:

“First off, the businesses that JCT is referring to are not necessarily ‘small.’ Saying the word ‘small business’ sounds good to the electorate because it brings up an image of a mom and pop store on Main Street America. But plenty of large businesses, as defined by net income or gross receipts, file their taxes under the individual income tax as opposed to the corporate income tax. Merely because a business is paying individual income taxes as opposed to corporate taxes does not mean it is ‘small.’ “


Statement From Chairman Schapiro on Financial Accounting Foundation Developments [SEC]
“I commend the Financial Accounting Foundation for its ongoing efforts to evaluate and improve the effectiveness and efficiency of the structure and operation of the Financial Accounting Standards Board by increasing the size of the Board. The Foundation has determined that this revised structure will facilitate the continuing efforts of the FASB to work with the International Accounting Standards Board on their important convergence work plan. In addition, this should enhance the ability of the FASB to address issues facing the U.S. capital markets and the needs of investors.

“I also would like to commend FASB Chairman Robert Herz for his more than eight years of service. During his tenure, Chairman Herz has served as an effective investor advocate to improve the quality of financial reporting standards around the world. I welcome the appointment of Leslie Seidman as Acting Chairman. During this interim period, I look forward to working with Acting Chairman Leslie Seidman and the FASB as they continue their important work.”

Twenty something day-trader nailed with $172M bill in back taxes, asks ‘What’s the IRS?’ [NYDN]
How does a barely surviving Spaniard end up owing over $170 million to the IRS? For starters, he really doesn’t owe the Service the money. The problem arose because he didn’t file a tax return for one year that he spent day trading. The Service concluded that he made $500 million.

China Traffic Jam Could Last Weeks [WSJ]
Today, be thankful for your commute. No matter how bad it was, at least the drive/ride ended.

Bob Herz Retiring as FASB Chair

Eight “successful” years is a helluva run, Bob. Not sure if he’s upstaging Tweedie’s exit next year or what. They’re buds and all. So now the speculation should probably start as to who will replace Roberto. Leslie Seidman will be running things as the “Acting” Chair and if you take the PCAOB’s as example, that “Acting” Chair can sit tight for awhile. Dan Goelzer has been “acting” as the Chair for over at the Board for over a year now.

So the important question is, who’s next to fly this ship? Taking shit from bank lobbiesenerally being known as being the biggest double-entry nerd in a gray suit this side of the pond is not an easy gig. We’d suggest a deputy accountant but there’s probably some silly qualifications that she will disqualify her. Does Tim Flynn put down the bag at KPMG? Do we finally get serious and get a knight to run this thing? Suggestions welcome.

NORWALK, Conn.–(BUSINESS WIRE)–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.

“Returning the 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”

“Returning the 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 Chairman.”

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 accountant.

The Two Best Comment Letters Written to the FASB You’ll Ever Read

Last month we told you about how the American Bankers Association encouraged anyone that disagreed with the FASB’s proposed fair value rule to write a letter telling Herz & Co. how much the proposal suind enough to provide a template for said “FASB Blows” correspondence so the anti-fair value crowd could get the gist of what needed to be said.

The ABA did warn, however, that the FASB hates, loathes, DETESTS form letters, so in order to make a valid point, it was advisable to not simple slap your name in the appropriate place but to articular your own special brand of hatred for the FASB.

As you may recall, many ABA groupies did not heed this warning, which no doubt resulted in Bob Herz and the rest of the Norwalk team using the letters to stoke their mid-summer weenie roast bonfire.

As disappointed as the ABA must have been with the lack of originality, we were sent this shining example that has been making the rounds at the Big 4 (or so we’re told). Our guess is that this is more of what the ABA had in mind:

FASB1

Bravo, James C. Blaine. Bravo. You are most definitely into the brevity thing. You have, presumably, made the ABA proud. But wait, there is a pro-fair value letter worthy of these pages.


Granted, it was written back in May but Brian Cowell is no less passionate than Mr Blaine:

FASB2

Nicely done, both of you. Everyone take note.