Robert Herz, chairman of the Financial Accounting Standards Board, spoke at the AICPA National Conference on Current SEC and PCAOB Developments* on December 6. Similar to the speech by SEC Chairman Christopher Cox on the previous day, Mr. Herz directed his comments to the proposition "that we need to reduce the complexity of our reporting system." The proposition may be true, but Herz did little to advance the cause in his speech.
In particular, Robert Herz merely asserted his beliefs without adding any logic or any evidence that the reporting system is too complex. Worse, he touts principles-based accounting as the savior for the world of financial reporting, but again provides no argumentation to support his hypothesis. Maybe it’s because there is none. (Read the full speech.)
See full Article. Also see full Speech transcript, in pdf format.
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