FAF Increases Size of FASB; FASB Chairman Robert Herz to Retire
The Financial Accounting Foundation (FAF) has increased the size of the Financial Accounting Standards Board (FASB) from five to seven members. The FASB previously operated with seven board members from its inception in 1973 until 2008.
“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 organisation’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.
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 1 October 2010.
Seidman has been a FASB member since July 2003. She has also served the FASB in various staff roles. Prior to joining the board, 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 JP Morgan. Seidman started her career as an auditor in the New York office of Arthur Young & Company (now Ernst & Young) and is a certified public accountant (CPA).