Meet Your New FASB Chair, Rich Jones

Rich Jones, CPA began his seven-year term as the eighth chairman of the Financial Accounting Standards Board (FASB) in July 2020. In this role, he heads up the seven-member Board that establishes generally accepted accounting principles (GAAP) for public companies, private companies and non-governmental not-for-profit organizations in the United States.

Jones' love of accounting started when he was in a high school introduction to accounting class. "I found the class interesting and decided to apply to college as an accounting major. The more I learned about the profession and how far it could take me from that introductory accounting course, the more I was committed to it."

His college path took him to Binghamton University (State University of New York), where he earned a Bachelor of Science degree in accounting in 1987. In New York, you needed to spend two years in public accounting to become a CPA. "While many of the people I started my career with moved on to other professions outside public accounting, I found the challenge of public accounting kept my interest. Few other occupations give you the chance to oversee a team and interact with senior corporate executives and entrepreneurs who created their businesses at such a young age. And there was always a new engagement and a new challenge on the next assignment."

Upon graduating from college, Rich's professional track brought him to Ernst & Young (EY), where he spent a 32-year career with the firm. "I was based in offices in White Plains, New York; Stamford, Connecticut and, ultimately, New York City. I served large and small domestic and international companies in a variety of industries."

After approximately 12 years in the audit practice, he transferred to the national office for what was intended to be a short rotation. That "short rotation" lasted almost 20 years, and he eventually became EY's chief accountant.

"While I served on several engagement teams during that time, more and more of my time was focused on helping other engagement teams and clients of the firm. That was where I got my first in-depth look at the standard-setting process and the work of the FASB."

The Road To The FASB

Jones' interest in standard-setting led him to serve on the Financial Accounting Standards Advisory Council (FASAC) from 2016 to 2018. He was also a member of the Accounting Standards Executive Committee of the American Institute of Certified Public Accountants (AICPA) from 2003 to 2008.

"As a member of the FASAC, I saw firsthand how, when you bring diverse stakeholders together in the same room to talk about an issue, it's easier to find common ground," reflects Jones. "It's a microcosm of what the FASB does as a standard-setter — we bring all parties together. When we do that, we often find we're closer on issues than we might realize."

Even though retiring from EY was not in his immediate career plan, the Financial Accounting Foundation (FAF) was searching for a new FASB chair to replace Russ Golden, whose second and final term concluded on June 30, 2020.

"After spending most of my career applying and interpreting standards, I was intrigued by the opportunity to help shape them. Since taking the reins, I've been impressed with the high caliber of my fellow Board members and the FASB staff, and I am proud to work with them towards continuous improvement of GAAP."

Looking Ahead and FASB Opportunities

When Jones accepted the position with the FASB, he did not anticipate one of his initial challenges to be working from home in quarantine.

"The amazing members and staff of the FASB have made a seamless transition to the work-from-home environment. Their professionalism has made it possible for us to continue to hold public meetings and support stakeholders through this challenging time. For example, we delayed the effective dates for leases, credit losses and revenue recognition for certain private companies. We also created a COVID-19 web portal that brings together, in one place, educational materials and information about standards and standard-setting activities we undertook to address pandemicrelated accounting issues. And we continue to closely monitor stakeholder questions to see if there are other areas we need to address. If there are, we will."

Jones notes there will also be a shift from a career focused on interpreting and applying the rule book to creating and modifying it. In doing so, the "right answer" may not always be so apparent — but the skills developed by working with clients and building consensus in public accounting translate well to standard setting.

While he plans to continue fulfilling the FASB's mission with as seamless a transition as possible, changes are happening at a rapid pace as technology continues to evolve.

"In this digital age, there is always an insatiable desire for more information and a cost to that information. I intend to put added emphasis on cost/benefit analysis throughout our standard-setting activities. It will challenge us to evaluate the case for change and identify and understand the types of users who will benefit from that change and how they will use it."

The FASB recently launched the post-implementation review (PIR) of major FASB standards that are already in use among public companies and other organizations. The PIR process is an essential part of the standard-setting process that helps determine whether the standards meet expectations. Currently, the Board is reviewing the effectiveness of the leases, credit losses and revenue recognition standards. The PIR process will help ascertain if there are areas of improvement to address.

"Like all standard setting, the PIR process is driven by stakeholder feedback. We need to understand all perspectives on what works, what doesn't, and what we can improve. That's why one of my first priorities as chair will be to embark on a listening tour."

Advice For Georgia CPAs

How can GSCPA members help? "I think that unnecessary complexity in accounting can drive poor information, rather than better information for users. I think CPAs are essential in identifying areas for improvement and unnecessary cost and complexity that should help us make standards better. I encourage GSCPA members to continue to engage in our standard-setting process by sharing your views, questions and insights on our activities. You help drive continuous improvement of standards."

When not at work, the New York native enjoys spending time with his wife, Regina, their three children and two dogs. "I am a longsuffering fan of the Mets and Rangers, but I continue to hold out hope for both teams. As Mets great Tug McGraw once said, 'Ya gotta believe!'"

Jamie Etzbach is the director, publications and marketing for The Georgia Society of CPAs. She ensures all member communications, both print and electronic, provide member value and strategically meet the needs of the Society’s membership.