US standard-setter's processes may be scrutinised

The US standard setter's processes could be questioned by a top-level SEC committee tasked with reducing the complexities of financial reporting.

The suggestion emerged yesterday during the first meeting of The Advisory Committee on Improvements to Financial Reporting, which was formed last month in an effort to try to reduce the complexity of reporting in the US.

SEC chairman, Christopher Cox, told the gathering that accounting standards that results from the Financial Accounting Standards Board's process leave open many questions of interpretation.

He said the FASB's process for setting its priorities and responding to inquiries may be scrutinised by a sub-committee.

Other sub-committees of the group are to review the audit process and compliance, the delivery of financial information, and international coordination.

Further reading:

SEC names members of financial reporting committee