At-large trustee heads FAF.
Johnson, who has a PhD in economics, is cochairman of Johnson Smick International, a Washington, D.C., consulting firm that provides policy and economic analysis to US. and foreign financial institutions. He was assistant secretary of the treasury from 1982 to 1986 and vice-chairman of the Board of Governors of the Federal Reserve System from 1986 to 1990. "Standard setting belongs in an independent private organization," Johnson told the Journal. "To that end, I see part of the FAF's role is making sure the process is perceived as fair." The problem -- as exemplified by the furor over the proposed derivatives standard despite extensive exposure -- may be one of public relations: "The FASB has been unfairly attacked. It's not as if the derivatives project was a big surprise to anyone; it's been debated and discussed for a long time. We need to help financial statement preparers and users understand and support the process -- a lot of them simply may not have been paying attention."
Another issue with its share of controversies is international accounting, which Johnson said would be a key concern for the FAF over the next few years. "The world is changing quickly -- the standard-setting process is speeding up, and that makes some people uncomfortable." He said the FAF could help the FASB, SEC and other groups coordinate their efforts in addressing international GAAP.
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|Title Annotation:||Manual H. Johnson, Financial Accounting Foundation|
|Publication:||Journal of Accountancy|
|Article Type:||Brief Article|
|Date:||Nov 1, 1997|
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