Securities and Exchange Commission Chairman Christopher Cox today announced the establishment of an advisory committee that will examine the U.S. financial reporting system with the goals of reducing unnecessary complexity and making information more useful and understandable for investors.
'Our current system of financial reporting has become unnecessarily complex for investors, companies, and the markets generally,' Chairman Cox said. 'The time is ripe to review how that system can be made less complex and more useful to investors.'
The advisory committee will focus on:
the current approach to setting financial accounting and reporting standards;
the current process of regulating compliance by registrants and financial professionals with accounting and reporting standards;
the current systems for delivering financial information to investors and accessing that information;
other environmental factors that drive unnecessary complexity and reduce transparency to investors;
whether there are current accounting and reporting standards that impose costs that outweigh the resulting benefits, and
whether this cost-benefit analysis is likely to be impacted by the growing use of international accounting standards.
The committee will be chaired by Robert Pozen, The group is expected to issue a final report in August 2008.
Press release
© Graham Bishop
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