July 14, 2010 / 5:41 PM / 9 years ago

FASB hires expert to review how new rules perform

* FASB hires expert for post-implementation reviews

* Accounting changes to be reviewed after they take effect

By Emily Chasan

NEW YORK, July 14 (Reuters) - The Financial Accounting Standards Board, which writes U.S. accounting rules, said on Wednesday it had hired an accounting expert to lead reviews of the board’s new rules and standards after they have been implemented.

Mark Schroeder, a recently retired senior partner at Deloitte & Touche [DLTE.UL], will serve as the board’s first “post-implementation review leader” and also serve a similar role for the Governmental Accounting Standards Board, FASB said.

The hiring of Schroeder is one of the big steps that FASB has taken to formalize its process for review of how new standards are performing. Banks and investors had complained during the financial crisis that FASB’s new rules on mark-to-market accounting had contributed to freezing the credit markets, but there was no formal process for reviewing the rules.

In 2008, a financial reporting advisory committee to the U.S. Securities and Exchange Commission recommended that FASB formalize a process for reviewing the effects of accounting changes after the changes had taken effect.

The new review process could face a big test in the next few years, as the FASB and IASB expect to complete major projects to align about a dozen key areas of accounting by the end of 2011.

The London-based International Accounting Standards Board (IASB) has also pledged to undertake post-implementation reviews of its major rule changes. (Reporting by Emily Chasan, editing by Matthew Lewis)

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