II
110th CONGRESS
1st Session
S. 834
IN THE SENATE OF THE UNITED STATES
March 9, 2007
Mr. Hatch introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs
A BILL
To require annual testimony before Congress by the Securities and Exchange Commission, the Financial Accounting Standards Board, and the Public Company Accounting Oversight Board, relating to efforts to promote transparency in financial reporting.
Short title
This Act may be cited as the
Promoting Transparency in Financial
Reporting Act of 2007
.
Findings
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 thereof, beginning in 2007, and for 5 years thereafter, to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives on their efforts to reduce the complexity in financial reporting, so that investors are provided with more accurate and clear financial information. That testimony shall address—
complex and outdated accounting standards;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
promoting disclosures in plain
English
.