Saturday, August 25, 2007

Dennis Bereford and FASB

In an event too ironic to describe, apparently Dennis Bereford, long-time chief mandarin of the FASB, but now serving on a couple of audit committees, told a group that some business people described the rules emanating from the FAS as rules that don't make any sense, but if you violate them you go to jail.

The statement is of course correct - but the irony is that the FASB began issuing those increasingly recondite rules under his direction. Further, Bereford stridently defended those rules - I particularly remember the protracted battle over the totally goofy rules for accounting for stock options - which essentially all of industry opposed - but not the less eventually enacted as FAS 123R.

Denny - you created Frankenstein - now he is your creature....

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