April 2001

FASB Technical Director Furthers Ongoing Dialogue with Society Committees

By Tom Morris

Tim Lucas, director of research and technical activities for the Financial Accounting Standards Board (FASB), spoke at a joint meeting of the New York State Society of CPAs Financial Accounting Standards and SEC Practice Committees earlier this year. The presentation gave both committees a unique opportunity to hear first-hand about the board’s activities and plans and to give direct input.

According to Financial Accounting Standards Committee Chair Robert Sohr, both sides benefit from the joint meeting that has been held for four consecutive years.

“FASB benefits from this meeting because it allows them to get in touch with practitioners,” Sohr said. “We benefit from being able to actively participate in the regulatory process. Personally, I benefit from background and insight into how the board deliberates.”

Sohr said the joint meeting also helps the committees form sound conclusions.

“It’s one thing to review an exposure draft in abstract, but having direct insight into the FASB members and staff is better,” he said. “The setting is very collegial, and we discuss pending accounting regulations in a constructive way. Lucas’ insight helps us in that process.”

SEC Practice Committee Chair Robert Waxman agreed.

“Most important for us is the informality of the session,” Waxman said, “with a lot of give-and-take and questions and answers.”

He said that Lucas explained some of the reasons behind FASB’s recent decision to drop the consolidations project. Turnover had caused the board to shift its attention toward naming new members. And new board members need time to get up to speed.

“FASB deals with many complex issues, and what Lucas brings to the joint meeting is the story behind the regulations—not just what FASB does, but the why or why not involved in the regulations,” Waxman said. “There’s a lot to be learned from such a meeting.”