< Back to H.R. 2664 (111th Congress, 2009–2010)

Text of the Promoting Transparency in Financial Reporting Act of 2009

This bill was introduced in a previous session of Congress and was passed by the House on September 9, 2009 but was never passed by the Senate. The text of the bill below is as of Sep 10, 2009 (Referred to Senate Committee).

Source: GPO

IIB

111th CONGRESS

1st Session

H. R. 2664

IN THE SENATE OF THE UNITED STATES

September 10, 2009

Received; read twice and referred to the Committee on Banking, Housing, and Urban Affairs

AN ACT

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.

1.

Short title

This Act may be cited as the Promoting Transparency in Financial Reporting Act of 2009.

2.

Findings

Congress finds the following:

(1)

Transparent and clear financial reporting is integral to the continued growth and strength of our capital markets and the confidence of investors.

(2)

The increasing detail and volume of accounting, auditing, and reporting guidance pose a major challenge.

(3)

The complexity of accounting and auditing standards in the United States has added to the costs and effort involved in financial reporting.

3.

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 2009, 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—

(1)

reassessing complex and outdated accounting standards;

(2)

improving the understandability, consistency, and overall usability of the existing accounting and auditing literature;

(3)

developing principles-based accounting standards;

(4)

encouraging the use and acceptance of interactive data; and

(5)

promoting disclosures in plain English.

Passed the House of Representatives September 9, 2009.

Lorraine C. Miller,

Clerk.