US accounting oversight body hits roadblock

US lawmakers have so far failed in an attempt to establish a new oversight
body with authority over the nation’s accounting rule maker,

Moves to create a new body with power to over rule the US standard setter,
the Financial Accounting Standards Board (FASB), have been watered down.

The body had the potential to weaken the American financial regulator, the US
Securities and Exchange Commission (SEC), which has oversight on the creation of
accounting standards.

The move may have complicated FASB’s efforts to converge international and US
accounting standards, currently taking place in meetings in the US and London.
The body is working towards full convergence of international and US accounting
standards by 2011.

Implementation of the new rules would need SEC to sign-off on the accounts.
An extra oversight body could have weakened the ability of the SEC to have final
say on the implementation of the new rules.

Read the full story:
Waters Down FASB-Oversight Plan

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Fiona Westwood of Smith and Williamson.