H. R. 755
IN THE SENATE OF THE UNITED STATES
February 28, 2007
Received; read twice and referred to the Committee on Banking, Housing, and Urban Affairs
To require annual oral testimony before the Financial Services Committee of the Chairperson or a designee of the Chairperson of the Securities and Exchange Commission, the Financial Accounting Standards Board, and the Public Company Accounting Oversight Board, relating to their efforts to promote transparency in financial reporting.
This Act may be cited as the
Promoting Transparency in Financial
Reporting Act of 2007.
Congress finds the following:
Transparent and clear financial reporting is integral to the continued growth and strength of our capital markets and the confidence of investors.
The increasing detail and volume of accounting, auditing, and reporting guidance pose a major challenge.
The complexity of accounting and auditing standards in the United States has added to the costs and effort involved in financial reporting.
Annual testimony on reducing complexity in financial reporting
The Securities and Exchange Commission, the Financial Accounting Standards Board, and the Public Company Accounting Oversight Board shall annually provide oral testimony by their respective Chairpersons or a designee of the Chairperson, beginning in 2007, and for 5 years thereafter, to the Committee on Financial Services of the House of Representatives on their efforts to reduce the complexity in financial reporting to provide more accurate and clear financial information to investors, including—
reassessing complex and outdated accounting standards;
improving the understandability, consistency, and overall usability of the existing accounting and auditing literature;
developing principles-based accounting standards;
encouraging the use and acceptance of interactive data; and
Passed the House of Representatives February 27, 2007.
Lorraine C. Miller,