FASB moves to downsize

The Financial Accounting Standards Board is to downsize, with two fewer
members and an increase in the power of its chairman.

The board will now include five members rather than seven. There are several
vacancies coming up and the trustees had been concerned that training new
members might slow down plans to converge US and international accounting

But the moves may also be seen in the context of the moves globally to
international financial reporting standards, devised by the International
Accounting Standards Board. The FASB faces a debate over its future as IFRS
takes hold across the world.

The board’s oversight body, the Financial Accounting Foundation, proposed the
changes in December, with the plan criticized by many.

Further Reading:

the Reuters story

Herz measures up FASB for a
wooden overcoat

faces major overhaul

Related reading

Fiona Westwood of Smith and Williamson.