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Sweeping Away GAAP FASB's Herz calls for a national plan to wean U.S. companies from their current rules-based accounting system.

Marie Leone, CFO.com | US
September 28, 2007

FASB Herz comments

Just call me a cynic, but how are we accountants going to make a change to follow a single accounting standard when "the powers that be" can't get it together for at least the past thirty years to develop a rational accounting and disclosure system for non-public companies? Why are these comments even finding their way into print? Does anyone believe them?

And while they're at it, howabout a few changes to the existing rules so that companies are actually able to measure such things as gross and net income that doesn't require a volume or two of footnotes to explain them.

Back when this profession had leaders with some integrity and competence, I didn't see the apparent broken system we have now. Must be because it's all about egos and money.

Posted by Thomas Tone | Oct 1, 2007 6:03 PM ET

Global, unified, principles-based standard

Howsoever painful and time consuming the process, there should be a principles-based accounting standard.

The language of accounting should be the same regardless of the location of the reporting company.

The standard should facilitate investor friendly transparent disclosure of everything material that goes into the preparation of the financial statements.

There should be supplemental disclosures/ reconciliation to accomodate any departures in complying with local regulatory requirements.

Posted by Chandrasekar Venkataraman | Oct 1, 2007 6:25 AM ET