CEO of FASB’s parent foundation says Senate bill would undermine standard setting

BY KEN TYSIAC

Financial Accounting Foundation President and CEO Terri Polley told a Senate committee on Tuesday that a provision in the so-called Schumer-Toomey bill, “raises serious issues about the continued independence of the standard-setting process.”

The proposal is designed to decrease the administrative burden on small and medium companies and spark job creation by making it easier for companies to go public. Polley, who runs the organization that oversees FASB, submitted a statement to the Senate Banking, Housing and Urban Affairs Committee. She said Section 3(c) of the proposed Reopening American Capital Markets to Emerging Growth Companies Act of 2011, S. 1933, would undermine FASB’s standard-setting process.

She said the provision would “effectively legislate accounting standards, jeopardizing the integrity” of standards relied on by investors and other stakeholders. Polley urged the removal of Section 3(c) from the proposal.

Ken Tysiac ( ktysiac@aicpa.org ) is a JofA senior editor.

More from the JofA:

 Find us on Facebook  |   Follow us on Twitter  |   View JofA videos

SPONSORED REPORT

Tax reform complicates year-end tax planning

Get your clients ready for tax season with these year-end tax planning strategies, which address how to make the most of recent tax law changes, such as the new deduction for qualified business income and the cap on the deductibility of state and local taxes.

VIDEO

What RPA is and how it works

Robotic process automation is like an Excel macro that can work on multiple applications, says Danielle Supkis Cheek, CPA. RPA can complete routine, repetitive tasks such as data entry, freeing up employee time from lower-level chores.