Recollections on Standards Setting, Convergence, and Crisis

An Interview with Former FASB Chair Robert H. Herz

Mary-Jo Kranacher

On August 24, 2010, Robert H. Herz announced that he was stepping down from his position as FASB chairman, a post he held since July 2002. During Herz's tenure at the board, FASB took an active role in responding to a changing economic environment and global marketplace. Since the Norwalk Agreement of 2002, FASB has pursued the goal of converging U.S. GAAP with International Financial Reporting Standards (IFRS). This movement toward a single set of high-quality global standards has required the board to work closely with the International Accounting Standards Board (IASB). As a result, a number of standards have been issued to close the gap between the two systems. The past couple of years have also seen a flurry of guidance responding to the global financial crisis that began in 2008, the effects of which are still being felt in economies around the world.