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 WHITE PAPER

Preparing the statement of cash flows

This instructive white paper outlines common pitfalls in the preparation of the statement of cash flows, resources to minimize these risks, and four critical skills your staff will need as you approach necessary changes to the process.

RESOURCES

Keeping you informed and prepared amid the COVID-19 crisis

We’re gathering the latest news stories along with relevant columns, tips, podcasts, and videos on this page, along with curated items from our archives to help with uncertainty and disruption.