Donald Nicolaisen, former chief accountant of the Securities and Exchange Commission, and Financial Crisis Advisory Group Co-Chairman Harvey Goldschmid are emphasizing the importance of independence in setting accounting standards. A report released by FCAG on July 27 made recommendations on how regulators, accounting standard setters and chief financial officers can help prevent another financial crisis by fixing "weaknesses" in standards. "It seems clear that accounting standards were not a root cause of the financial crisis. At the same time, it is clear that the crisis has exposed weaknesses in accounting standards and their application," the report said....Changes in accounting standards from fair value to recording of CMBS and RBS transactions and the accounting for leases are being proposed as GAAP is being merged with IFRS (International Financial Reporting Standards). While the move toward a global set of standards is past-due, it is important for all real estate industry participants to understand the real-life impact these changes will have on the market and our future. Get informed and let your industry group know so they can advise FASB and IFAC on how these changes affect you...

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