Accounting and Auditing
The Chamber supports implementing a global corporate financial reporting model. The Financial Accounting Standards Board (FASB) and International Accounting Standards Board (IASB) are in the process of releasing eight major accounting standards to advance the goal of a single global accounting standard. CCMC will engage standard setters and regulators to ensure that these projects proceed in a deliberative open process and that the right standards are implemented.
A few areas we are concentrating on are:
- Lease Accounting
- Mandatory Audit Firm Rotation
- Fair Value
- Loss Contingencies
- Transition Methods and Effective Dates
- Hedge Accounting
Financial Instruments Reporting and Convergence Alliance (FIRCA)
The Chamber led coalition, FIRCA, supports the adoption of joint IASB and FASB international high quality robust accounting standards and assists standard setters in providing a wide range of input to ensure the proper consideration of business operations and potential unintended consequences in the development and implementation of accounting standards. In addition FIRCA works with standard setters and decision makers to ensure that these projects are conducted jointly to insure a comprehensive response to financial reporting policies. The coalition is comprised of 9 trade associations – American Council of Life Insurers, Commercial, Mortgage Securities Association, Council of Federal Home Loan Banks, Group of North American Insurance Enterprises, Mortgage Bankers Association, Property Casualty Insurance Association of America, the Financial Services Roundtable, the Real Estate Roundtable and the U.S. Chamber of Commerce.
Recent Activity
March 28, 2012: Tom Quaadman will testify before the House Financial Services Committee on FASB-PCAOB oversight.
March 22, 2012: Tom Quaadman participated in PCAOB’s public meeting on auditor independence and audit firm rotation.
February 29, 2012: CCMC submitted a comment letter to the PCAOB regarding the proposed auditing standard related to communications with audit committees.
February 23, 2012: FIRCA (Financial Instruments Reporting Convergence Alliance) submitted comment letters to the SEC and the PCAOB criticizing the continued consideration of the mandatory audit firm rotation proposal and calling for the creation of a new business advisory group within the PCAOB.
February 16, 2012: The Chamber partnered with several leading nonprofit and commercial organizations to release a report that examines the economic impact of the FASB and IASB’s proposed lease accounting standard. The Economic Impact of the current IASB and FASB Exposure Draft on Leases, specifically looks at how the proposed standard would negatively impact job creation, the health of the U.S. real estate sector, and liabilities of U.S. publicly traded companies.
February 8, 2012: CCMC submitted a comment letter to the FASB regarding the proposed accounting standards update on Financial Services-Investment Companies and the proposed updates on Real Estate-Investment Property Entities.
January 9, 2012: CCMC submitted a comment Letter to the PCAOB regarding the proposed amendments to auditing standards and Form 2.
December 2, 2011: Letter to FASB Extension Request for Proposed Accounting Standards Updates