Apparently Accounting Standards Update No. 2011-03 didn't quite hold things together as well as people would have hoped: FASB's newest proposal is meant to address more recent concerns that current accounting requirements do not yet appropriately reflect a entity's obligations and risks resulting from repurchase agreements, said FASB Chairman Leslie Seidman in a prepared statement. […]
The last ten years haven't gone exactly the way the bookworms at the FASB wanted. The Norwalk Agreement, signed in 2002, was supposed to be the first step in resolving the differences between international financial reporting standards and Almighty U.S. GAAP. Alas, despite a lot of agreeing, disagreeing, and agreeing to disagree we've ended up […]
~ Update includes quotes from Financial Accounting Foundation spokesperson. FEI (via BNA Bloomberg which requires a subscription) reports that the search is on for a successor to Leslie Seidman as the head of the FASB. The Financial Accounting Foundation (FAF), which oversees the FASB, has launched a search for a successor chair to current FASB […]
A little bird told me that today is FASB Chair Leslie Seidman's 50th birthday. Our source says that she happened to mention it last night during her keynote address at the annual dinner for the American Women's Society of CPAs' New York City chapter. Fifty is a big one so we here at Going Concern would like […]
Turns out, everyone is befuddled by the definition of "nonpublic entity": The Financial Accounting Standards Board has added a new project to its agenda to re-examine the definition of a “nonpublic entity,” as part of its efforts to reach out more to private company constituents. […] The decision by FASB chair Leslie F. Seidman to add […]
The aim is for companies across the world to recognise revenue consistently as part of wider efforts to forge a single set of global acccounting rules to help investors. The core principle that a company must recognise income from contracts when it transfers the goods or services to the customer remains unchanged. But the proposal has been simplified in parts and contains more guidance after several sectors like construction and telecoms raised concerns. “Our proposals will give analysts and investors the confidence that revenue is being presented on a consistent basis, across industries and continents,” IASB Chairman Hans Hoogervorst said in a statement. “We plan to conduct additional outreach with interested parties during the comment period to help people understand the proposed guidance and to listen to any remaining concerns,” said FASB Chairman Leslie Seidman. [Reuters]
Floored. Just floored.
Financial Accounting Standards Board chair Leslie Seidman said that many of the priority projects slated for convergence with the International Accounting Standards Board probably will not be settled until next year at the earliest.
Les will have all you haters know that this adjusted timeline has been well received by those that are taking this shit seriously:
This is a real process with real outreach and real consideration of the issues that have been raised. And the fact of the matter is that it takes time to work through these issues. The changes which we have made to the timetable, which we have made jointly with the IASB, have been very well received among the constituents who take this process seriously. They are very supportive of our strong commitment to making sure that we end up with improved standards here that are going to stand the test of time.
So if you were expecting Fisher Price accounting rules, you can forget it. These beautiful babes will be used to line up the debits and credits when Spacely Sprockets finally breaks ground.
We’re sure all of you have been anxious for an update since the last FASB/IASB progress report last November, wait no longer.
• Completed five projects: In the next few weeks the IASB will issue new standards on consolidated financial statements (including disclosure of interests in other entities), joint arrangements and post-employment benefits and both boards will issue new requirements in relation to fair value measurement and the presentation of other comprehensive income.
• Given priority to the three remaining Memorandum of Understanding projects, as well as insurance accounting: The Boards have made substantial progress towards completion of the three remaining MoU projects covering financial instruments accounting, leasing and revenue recognition, as well as their joint project to improve and align US and international insurance accounting standards.
• Provided for further time to finalise their convergence work: The boards have agreed to extend the timetable for the remaining priority convergence projects beyond June 2011 to permit further work and consultation with stakeholders in a manner consistent with an open and inclusive due process. The convergence projects are targeted for completion in then second half of 2011 (however, the U.S. insurance standard, which has not yet been exposed, is targeted for the first half of 2012).
Wait a second, did they really say that putting off more convergence work is an accomplishment? That’s our kind of work right there. IASB Chair Sir David Tweedie and FASB Chair Leslie Seidman didn’t let that little detail deter them from patting themselves on the back for a job well done. Said Sir David, “the convergence programme continues to raise the standard of financial reporting worldwide, delivering much-needed improvements in key areas and providing a solid platform for global high quality standards.” What is that even supposed to mean? Sounds like the same pro-convergence gibberish we’ve been hearing all along.
Someone come get us when this actually means something.
She’s officially the boss for reals.
The Board of Trustees of the Financial Accounting Foundation (FAF) today named Leslie F. Seidman chairman of the Financial Accounting Standards Board (FASB), effective immediately. Ms. Seidman has served as the acting FASB chairman since the retirement of Robert H. Herz on September 30, 2010.
“Our Board of Trustees is thrilled that Leslie Seidman has agreed to accept the position as Chairman of the FASB. She brings both unparalleled standard-setting experience and outstanding leadership skills to her new role,” said FAF Chairman John J. Brennan. “As the FASB continues its efforts to address the many significant accounting and financial reporting issues both here in the U.S. and globally, Leslie’s depth of experience with international and domestic financial reporting issues will enhance our progress toward meeting the needs of all of our varied constituents. On behalf of the FAF Trustees, we are delighted that she will be leading the FASB’s efforts to tackle these many challenges for the betterment of capital markets participants both here and abroad.”
How does Les feel about being the new punching bag of the anti-IFRS contingent, House Financial Services Committee, the American Bankers Association and countless letters and emails of ridicule? Pretty good, actch:
“I am honored to be leading the FASB at such a pivotal time in our history,” said Ms. Seidman. “The FASB remains committed to developing standards that will provide investors and other capital providers with decision-useful information. We are at a crucial point in our convergence program, and my fellow Board members and I are working in close partnership with the IASB to improve the comparability of financial information around the world. We want our standards to enhance communication and confidence in financial reports, and we will continue to seek new ways to keep our stakeholders informed and engaged in the standard-setting process.”
It’s just accounting rules after all, how bad could it be?
… please answer this with your best explanation of your position. I’ll go on record saying I am expecting comment letters stuffed with expletives, paranoia, panic and conjecture and personally can’t wait to read some of them.
“Quirky” representatives of the Profession, you know who you are. I want long rambling anti-IFRS manifestos dammit, don’t disappoint me.
The Financial Accounting Standards Board (FASB or Board) is issuing this Discussion Paper to solicit information from stakeholders about the time and effort that will be involved in adapting to several anticipated new accounting and reporting standards and when those standards should become effective. The FASB will use that information to develop an implementation plan for those new standards that helps stakeholders manage the pace and cost of change. The FASB requests comments on this Discussion Paper by January 31, 2011.
The question FASB would like answered is “how the fuck are we going to pay for this convergence thing?” and they’re asking the profession to come up with solutions. I imagine some pockets of the profession couldn’t care less how much it will cost as they are only thinking about learning the new rules because, well, someone’s got to do it, right?
Don’t misunderstand it, they would also like to know if they should transition all at once or gradually, if effective dates should be different for various entities and just how many billable hours might be lost to figuring all of this out. So basically they need you guys to get on this ASAP because they’ve had several years to do it and are still lost.
“Our joint workplan supporting the Memorandum of Understanding with the IASB identifies targeted completion dates for various projects, but does not address when the standards would be effective,” notes Acting FASB Chairman Leslie F. Seidman. “We issued this Discussion Paper to gather the information we need to create a realistic, cost-effective plan for transitioning to the new standards.”
In other words: can you guys ballpark the timeframe and how we’re going to pay for it? I’d rather see the profession spend its quality billable time writing comment letters on its opinion of the transition and/or FASB’s handling of it. I think you fringe accountants know what to do, so I thank you in advance.