The Securities and Exchange Commission named Robert Herdman, a former senior partner with Ernst & Young, as its new top accountant.

Herdman will oversee and direct all of the commission’s accountants and accounting-related efforts, and communicates with national and international accounting communities. “In addition, Herdman will lead us in revising and modernizing our accounting and financial disclosure system,” an SEC official said in a statement. “He will also be a principal advisor in developing the U.S.’s policy on international accounting standards.”

Herdman has been a C.P.A. since 1971 and has spent 28 of the last 32 years with Ernst & Young. He is currently vice-chair of the consultancy, overseeing the professional practice of the firm’s Americas Assurance and Advisory Business Services.

At E&Y, he has been the senior partner responsible for the firm’s relationships with the SEC, the Financial Accounting Standards Board, and the American Institute of Certified Public Accountants.

On October 1, 2001, Herdman was to chair the AICPA’s SEC Practice Section Executive Committee. From 1986-1992, he was a member of the FASB’s Emerging Issues Task Force. Herdman also served on the SEC’s staff as a Professional Accounting Fellow from 1982 to 1984.

FASB to Address Accounting Issues in Wake of Attacks

A FASB task force on Thursday will discuss a number of accounting issues in the wake of the huge financial losses suffered in last week’s terrorist attacks.

Among the goals: To offer guidance to U.S. companies on how losses should be classified in the income statement and when they should be recognized.

The group — the Emerging Issues Task Force — will explore whether certain losses can be classified as “extraordinary” items, which would mean that the losses are one-time events.

The issue was added to FASB’s Emerging Issues Task Force agenda “in light of the extensive impact of those events,” according to published reports that cited the task force’s written summary.

SEC May Extend Emergency Measures

The SEC may extend for five days emergency measures that ease restrictions on corporate stock buybacks and other restrictions. Members of the commission believe this will help ensure that trading continues in an orderly manner, according to published reports.

The SEC’s emergency order expires Friday.

Last Friday, the SEC announced that public companies may repurchase their own securities without meeting the volume and timing restrictions that ordinarily would apply. In addition, public companies that repurchase their shares will not have adverse accounting consequences.

The SEC also noted that accounting firms may provide bookkeeping services to and help recover records for clients with offices in and around the World Trade Center, without violating auditor independence rules.

Airlines Now Junkers

The job picture is getting downright ugly in the flying business.

On Wednesday, a number of companies announced massive layoffs, bringing the aviation industry’s total job losses to nearly 100,000.

Boeing management said it will cut 30,000 jobs. UAL Corp.’s United Airlines slashed about 20,000 jobs, or about 20 percent of its workforce, while American Airlines said it will cut its workforce by at least 20,000 jobs at its American Airlines, American Eagle, and TWA units.

Officials at both airlines said the recent reduction in flight schedules left the carriers little choice but to lay off workers. Since the terrorist hijackings last week, United and American are flying 20 percent fewer flights.

The industry’s woes are spreading overseas as well. British Airways on Thursday said it would cut 7,000 jobs, or 13 percent of its workforce, and reduce its flight schedule by 10 percent.

As a result, industry leaders are hoping to hammer out a relief package with legislators. “Without this relief, the viability of the nation’s air transportation system is in doubt. It is as serious and straightforward as that,” said United CEO James Goodwin in a statement.

Meanwhile, Moody’s on Wednesday downgraded the ratings of the three largest U.S. airlines. Moody’s cut its senior unsecured debt ratings for American Airlines Inc. and its parent AMR Corp., as well as Delta Air Lines Inc,. to non-investment grade.

Moody’s also cut its rating for United Airlines Inc. four notches deeper into junk.

The ratings agency also warned that there may be more ratings cuts down the road. On Tuesday, Moody’s cut its ratings for Continental Airlines Inc.

In Other Layoff News…

• 3Com Corp. reported it will cut 1,000 more jobs after reporting a much larger loss for the fiscal first quarter.
• Lyondell Chemical said it will cut 600 jobs, or 20 percent of its workforce.
• Another chemical maker, Crompton Corp., said it will eliminate another 700 jobs.
• Pabst Brewing Co. closed its last brewery, resulting in the loss of 380 jobs.

And The Earnings Warnings Mount Too…

Where there are massive layoff announcements, earnings shortfalls are sure to follow.

And so far, nearly 50 U.S. companies have noted that future earnings would be adversely affected, at least in part, by last week’s terrorist attacks, according to the calculations of at least one wire service.

On Wednesday alone:

• The Tribune Co. warned that the lousy advertising market following the attacks would cause third-quarter and full-year earnings to come in below expectations.
• Another newspaper publisher, Knight Ridder Inc., said earnings per share for the current quarter would fall by 25 percent from the year- earlier period.
• Officials at Eastman Kodak Co. slashed third-quarter earnings outlook due to softness in the company’s health-imaging unit and negative effects from last week’s terrorist attacks.

In Brief

• A former employee was awarded $2.2 million on Tuesday in a discrimination suit against Outback Steakhouse. The employee accused the company of hiring a former Tampa Bay Buccaneer to do the same job — but paid the football player twice as much. The employee, Dena Zechella, worked in Outback’s construction department. She said she was ordered to train Steve Wilson as a site development assistant. He later took her job and was paid $20,000 more than what Zechella was paid. According to published accounts, Zechella was moved to a mostly clerical job, which was called a promotion. Later on, she was fired.
• Canadian National Railway sold $600 million in notes in two parts, led by Merrill Lynch & Co. and Salomon Smith Barney. In the first tranche, the company issued $400 million of 10-year notes priced to yield 6.41 percent, or 170 basis points over Treasurys. The second tranche consisted of $200 million worth of 30-year bonds priced at par to yield 7.375 percent, or 175 points over Treasurys. Both issues were rated Baa2 by Moody’s and BBB-plus by S&P.