FASB gets a new chairman

Starting in July, Russell Golden will head the board responsible for setting US accounting standards, the Financial Accounting Standards Board (FASB). He succeeds Leslie Seidman, who held the chairman role since late 2010. 

Golden has served as a FASB member since his appointment in September 2010. He previously served for six years on the FASB staff. Earlier, he was a partner at big four accounting firm Deloitte. 

His appointment comes at a time of significant work for the Norwalk, Connecticut-based FASB. The board is in the middle of a massive convergence project with its more globally minded counterpart the International Accounting Standards Board, but has not yet received word from the US Securities and Exchange Commission on whether wholesale adoption of international standards will be the way forward for US issuers. 

Nonetheless the FASB is updating its accounting rules to better sync with those produced by the IASB. A standard on revenue recognition is expected to be issued in the coming weeks. And this spring the FASB and the IASB are expected to issue a joint proposal on a new lease accounting standard, though some sources expect differences between the two boards to delay its release. Other projects still being worked on by the two boards involve accounting standards for financial instruments and insurance products. 

Earlier this week PE Manager reported that the FASB released a standard set of accounting guidelines for firms that face imminent liquidation. 

Golden’s appointment was decided by the Board of Trustees of the Financial Accounting Foundation (FAF), which oversees the FASB and its sister organization, the Governmental Accounting Standards Board.

“After an extensive search, which involved the evaluation of many highly qualified candidates from a variety of backgrounds, the trustees determined that Russ Golden is the best qualified person to take on the role of FASB chairman,” Jeffrey Diermeier, chairman of the FAF Board of Trustees, said in a statement.

Golden’s initial term as FASB chairman will extend to June, 2017. At that time, he will be eligible to serve another term of three years. FASB members are limited to serving a total of 10 years on the board.