The Financial Accounting Standards Board has named James L. Kroeker, former chief accountant for the U.S. Securities and Exchange Commission, as a member and vice chairman.
The appointment was announced Wednesday by the board of trustees of the Financial Accounting Foundation, which oversees FASB and its sister organization, the Governmental Accounting Standards Board.
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 on June 30 of former FASB Chairman Leslie F. Seidman.
The position of vice chairman was created early in 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,” said FAF board of trustees chairman Jeffrey J. Diermeier in a statement. “During his tenure as 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 the SEC’s 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, based in Wilton, Conn. Between 1999 and 2001, Kroeker was a practice fellow at 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.
“As a former FASB fellow and SEC chief accountant, I have had the opportunity to work closely with the talented and dedicated board and staff of the FASB," Kroeker said in a statement. "I am deeply honored be able to serve together with this outstanding team. The FASB has an agenda full of critically important issues and I look forward to continuing to move forward to improve and simplify financial reporting for the benefit of U.S. and global capital markets and investors.”
Most recently, Kroeker was a deputy managing partner in the professional practice group in Deloitte’s office in Washington, D.C.
“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 S. 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—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’s Advisory Committee on Improvement to Financial Reporting.
“I’m very pleased to welcome Jim to his new role as vice chairman of the FASB,” said FASB chairman Golden. “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.”
Center for Audit Quality executive director Cindy Fornelli welcome Kroeker's appointment. "The public company auditing profession congratulates James Kroeker upon his appointment as Vice Chairman of the Financial Accounting Standards Board," Fornelli said in a statement. “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.”