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FASB The Financial Accounting Standards Board (FASB) is a private, not-for-profit organization whose primary purpose is to develop generally accepted accounting principles (GAAP) within the United States in the public’s interest. The Securities and Exchange Commission (SEC) designated the FASB as the organization responsible for setting accounting standards for public companies in the U.S. It was created in 1973, replacing the Committee on Accounting Procedure (CAP) and the Accounting Principles Board (APB) of the American Institute of Certified Public Accountants (AICPA). (Wikipedia Jan 2010)
The Efficient Market Hypothesis
By John Schroy, on March 23rd, 2009 | 
The Crash of 2008 was exacerbated by a FASB mark-to-market rule that required financial institutions to write down assets below commonsense valuation. As John Maynard Keynes remarked, the problem was an academic scribbler’s unproven theory, some forty years ago.
That ’scribbler’ was Eugene Fama and his unproven idea was called “The Efficient Market Hypothesis”. The Crash of 2008 did much to discredit this harmful musing that supported Modern Portfolio Theory, mark-to-mark accounting, and unmanaged index funds.
US SEC
By John Schroy, on April 2nd, 2006 | 
The Financial Accounting Standards Board (FASB) is made up of seven members, six of whom are either ex-partners of major accounting firms or former high-ranking financial executives of their clients. Accounting practices and standards have a profound effect on capital flows, measured in hundreds of billions and even trillions of dollars. The interests of the issuers of securities are quite different from those of small investors who own these securities.
FASB
By John Schroy, on April 1st, 2006 | 
FASB concept statement No. 5 represents a further slow tightening of the screws as to the way pension liabilities are reported — one step in a long, excruciating journey that has been underway for decades. This rule is expected to have an incremental negative impact on old, unionized companies, further decline in private defined-benefit plans, and higher state and local taxes.
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