Congress wants banks to oversee US standard setting
New act would see formation of board to take over responsibility for accounting from SEC
New act would see formation of board to take over responsibility for accounting from SEC
A new US act could see the Securities and Exchange Commission lose its sole
responsibility for oversight of accountancy, and give banks a say in how
accounting rules are made.
The Federal Accounting Oversight Board Act would see the creation of the a
board comprised of five regulators, the Secretary of the Treasury, the chairman
of the Federal Reserve, the chairman of the SEC, the chairman of the Federal
Deposit Insurance Corporation, and the chairman of the Public Company Accounting
Oversight Board.
The proposals have sparked fears that politics is once again interfering with
the standard setting process. The Financial Accounting Standards Board would
operate under the FAOB and several stipulations appear in the bill that stem
from the mark-to-market issues that have so troubled the banks.
When creating standards the FAOB has to consider how standards create
systemic risk exposure to the American public, financial markets, and global
financial markets. The board must also make sure that accounting rules ‘handle
illiquid and liquid assets differently’.
It also states that any standards that have an adverse effect on the US
economy should be reviewed by the FAOB, according to
CFO.com.
Further reading
The numbers you crunch tell a story. Your expertis...
15yEmbracing user-friendly AP systems can turn the tide, streamlining workflows, enhancing compliance, and opening doors to early payment discounts. Read...
View articleOrganisations can enhance their financial operations' efficiency, accuracy, and responsiveness by adopting platforms that offer them self-service cust...
View articleIn a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...
View resourceDiscover how AP dashboards can transform your business by enhancing efficiency and accuracy in tracking key metrics, as revealed by the latest insight...
View articleThe ICAEW cited managing insurance costs, firms struggling to obtain coverage, assessing risk-taking capacity, and evolved firm structures as drivers ...
View articleThe IESBA emphasizes the importance of timely and global adoption of their standards. For corporate accountants, this means staying updated with chang...
View articleKPMG's faces record fine for a widespread exam cheating scandal, implicating senior staff and highlighting systemic ethical issues in the professional...
View articlePwC's Australia tax scandal has led to significant changes, including over 300 job cuts and the refusal to share a crucial report with Australian parl...
View articleAccountants and accounting firms play a crucial role in maintaining financial integrity, facing ethical dilemmas and regulatory challenges. Adherence ...
View articleThe creation of an effective sustainability standards infrastructure requires not only high-quality sustainability reporting and assurance standards, ...
View articleChanges will help to make accounting profession more attractive, ICAEW boss says Read More...
View article38% of firms required significant improvements, prompting the council to state Tier 2 and Tier 3 firms must "prioritise audit quality improvements and...
View article