UPDATE: The Center for Audit Quality (CAQ) issued the following statement by Executive Director Cindy Fornelli in reaction to the appointment of James L. Kroeker to the Financial Accounting Standards Board:
"The public company auditing profession congratulates James Kroeker upon his appointment as Vice Chairman of the Financial Accounting Standards Board.
"Mr. Kroeker's technical expertise and understanding of complex accounting issues and their impact on a variety of constituents will be of tremendous value to FASB and investors. His experiences working in the profession and in senior roles at the SEC will make him a great asset to the organization."
By Jason Bramwell
James Kroeker, a former chief accountant for the US Securities and Exchange Commission (SEC) who most recently served as a deputy managing partner with Deloitte LLP, was appointed a member and vice chairman of the Financial Accounting Standards Board (FASB).
The appointment was announced on July 24 by the board of trustees of the Financial Accounting Foundation (FAF), which oversees the FASB and its sister organization, the Governmental Accounting Standards Board (GASB).
Kroeker's term will begin on September 1 and conclude on June 30, 2018, when he will be eligible for appointment to an additional term of five years. He fills a vacancy created by the retirement of former FASB Chairman Leslie Seidman on June 30.
The position of vice chairman was created early in the FASB's history, but was later retired. In response to increasing demands on the time of the FASB chairman, the FAF trustees decided to reinstate the position.
"Jim Kroeker is ideally suited to fill the new role of vice chairman at this important time in the FASB's history", Jeffrey Diermeier, chairman of the FAF board of trustees, said in a written statement. "During his tenure as [SEC] chief accountant, Jim demonstrated an unwavering concern for the interests of investors, as well as those of preparers of financial statements. The combination of his deep technical expertise and his extensive experience working with a wide range of accounting constituents will make him an exceptionally able board member."
Kroeker was SEC chief accountant from 2009 to 2012, following two years of service as deputy chief accountant. Prior to that, he was a partner in the National Office Accounting Services group of Deloitte & Touche LLP in Wilton, Connecticut.
Between 1999 and 2001, Kroeker was a practice fellow at the FASB, leading the project that resulted in a new standard for accounting for stock compensation. Earlier in his career, he worked at Deloitte offices in Wilton and Omaha, Nebraska. Most recently, Kroeker was a deputy managing partner in the Professional Practice group in Deloitte's office in Washington, DC.
"Over the last few years, the trustees have observed the increasing demands on the FASB chairman, which prompted their decision to reinstate the role of vice chairman", said FAF President and CEO Teresa Polley. "In that role, Jim will assist FASB Chairman Russ Golden in representing the FASB with our external stakeholders and also will stand in for Russ as needed in guiding FASB's internal operations."
At the SEC, Kroeker led the effort to address the many accounting and auditing issues that grew out of the economic crisis of 2008 to 2009, including taking steps to improve off-balance-sheet accounting guidelines. In addition, he directed the SEC's congressionally mandated study of fair value accounting standards and served as the designated federal officer responsible for the oversight of the SEC Advisory Committee on Improvements to Financial Reporting.
"I'm very pleased to welcome Jim to his new role as vice chairman of the FASB", Golden said. "With Jim's deep knowledge of and experience in accounting issues, all of us at the FASB know he will prove to be a tremendous asset to the organization."