New Faces Enter Fray in Accounting

As the great accounting fight of the past decade moves near to a conclusion that seems likely to satisfy no one, the cast of characters is suddenly changing. The two most important accounting bodies in the world will be under new leadership as they try to move on from bruising battles that have pitted them against banks, bank regulators and politicians.

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Mike Theiler/Reuters

Robert H. Herz stepped down as head of the F.A.S.B. rule-making board this month.

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Leslie F. Seidman is acting chairwoman of the F.A.S.B.

The changes are coming before it is clear just how far the two boards — the Financial Accounting Standards Board, which sets accounting rules in the United States, and the International Accounting Standards Board, whose rules are followed in a growing number of countries — will have to back down in their efforts to force banks to report the current value of their assets.

FASB, IASB Proposal Seeks to Clarify Reporting Entity Concept

March 11, 2010

FASB and the IASB Thursday published an exposure draft, Conceptual Framework for Financial Reporting: The Reporting Entity, that is part of a joint project between the boards to develop a common and improved conceptual framework for developing future accounting standards.

The ED discusses what constitutes a reporting entity, which in different situations could be a group of entities, a single entity or only a portion of an entity.