- Posted by Ivan303 (A) on November 06, 2009 at 17:22:52
In Reply to: RE: How the Democrats want to change accounting rules... posted by Jim Pearce on November 06, 2009 at 17:08:25
"Since 1973, the Financial Accounting Standards Board (FASB) has been the designated organization in the private sector for establishing standards of financial accounting. Those standards govern the preparation of financial statements. They are officially recognized as authoritative by the Securities and Exchange Commission (SEC) (Financial Reporting Release No. 1, Section 101, and reaffirmed in its April 2003 Policy Statement) and the American Institute of Certified Public Accountants (Rule 203, Rules of Professional Conduct, as amended May 1973 and May 1979). Such standards are important to the efficient functioning of the economy because investors, creditors, auditors, and others rely on credible, transparent, and comparable financial information."
"The SEC has statutory authority to establish financial accounting and reporting standards for publicly held companies under the Securities Exchange Act of 1934. Throughout its history, however, the Commission’s policy has been to rely on the private sector for this function to the extent that the private sector demonstrates ability to fulfill the responsibility in the public interest."
Granted some political pressure was put on FASB by congress a year or so ago, in order to change the way asserts on the banks books were to be valued (IIRC this helped the banks by making them look solvent when they clearly were not.)
Link below:
Boats and Fish!
