Term
| What is the greatest development that has arisen from the financial crisis? |
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Definition
| A broader constituency is calling for greater transparency in recovering and rebuilding investor and public confidence. |
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Term
| Did accounting cause the financial crisis? Will the improvement of standards end the crisis? |
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Definition
| No; it did, however, reveal a number of areas requiring improvement of standards and overall transparency. |
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Term
| What did Herz state is the key to getting the country back on its feet? |
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Definition
| Transparency. He also said that it is the key in keeping the world from suffering another economic crisis. |
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Term
| What is transparency, according to Herz? |
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Definition
| A fundamental and absolutely essential attribute of sound financial markets. Relevant, trustworthy, and timely information is the oxygen of financial markets. |
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Term
| What does politicization of accounting standard setting by special interests risk? |
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Definition
| Undermining public confidence in the integrity of financial reporting. |
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Term
| What changes did Herz call for? |
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Definition
| New infrastructure - with effective regulation, oversight, and enforcement. |
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Term
| What does Herz support regarding bank regulation capital and FASB standards? |
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Definition
Greater decoupling between the determination of bank regulation capital and FASB standards.
He also believes that the reform needs to convince the American public that the FASB has taken steps to move past one-way capitalism. |
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