FASB's chairman admits to concern about "control" issues with the SEC, but pledges to guard FASB's independence.
In the wake of reports suggesting that the Securities and Exchange Commission is trying to exert more control over accounting standards, Robert Herz, chairman of the Financial Accounting Standards Board, conceded Thursday that recent events had created concerns on the board, but reaffirmed FASB's independence.
Maintaining independence is a "difficult issue, a difficult balance," said Herz, speaking at an industry conference sponsored by Pace University's Lubin's School of Business and held in New York. "We get our authority through the [Securities and Exchange Commission] and now we take public money," explained Herz. "With that comes accountability and oversight, but there has to be respect for independence," he said.
Most of Herz's comments focused on the convergence of global financial reporting, and the future of FASB. However, the audience of accounting industry experts also questioned Herz about whether the SEC held too much sway over the standard setter. Earlier this month, CFO.com was first to report
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