Accounting and Auditing
The Chamber supports consistent global standards and works with The Financial Accounting Standards Board (FASB) and International Accounting Standards Board (IASB) to ensure the overall system better serves all users of financial statements.
Priority: Ban Mandatory Auditor Rotation
U.S. and foreign regulators have been considering a mandatory audit firm rotation, which would reduce audit quality, diminish the role of audit committees, increase the incidence of undetected fraud, and raise costs. Regulators on both sides of the Atlantic should abandon this proposal.
Priority: Further Improve Systems to Better Serve All Users of Financial Statements
- Create a consistent global standard for accounting and auditing so investors around the globe are using the same financial reporting “language” and to ensure better investment decisions can be made.
- Require the Public Company Accounting Oversight Board (PCAOB) and Financial Accounting Standards Board (FASB) to follow transparency requirements of the Administrative Procedures Act (APA) and Federal Advisory Committee Act (FACA) in developing standards and conduct cost-benefit analysis of proposed standards.
- Create a financial reporting forum made up of regulators, standard-setters, investors, and businesses to proactively identify problems within the financial reporting system and suggest solutions.
Other areas of concentration:
- Lease Accounting
- Fair Value
- Loss Contingencies
- Hedge Accounting
- Testimony on Legislation to Ban Mandatory Firm Rotation: May 23, 2013: "Legislative Proposals to Relieve The Red Tape Burden on Investors and Job Creators"
- Comment Letter to The Sustainability Accounting Standards Board on Conceptual Framework Exposure Draft. (PDF) July 26, 2013
- Comments on the International Integrated Reporting Council‘s Consultation Draft. (PDF) July 15, 2013
- Proposed Auditing Standard on Related parties and Related Amendments. (PDF) July 8, 2013
- H.R. 1564, the "Audit Integrity and Job Protection Act". (PDF) July 8, 2013
- Joint Industry Letter to FASB and IASB Regarding Proposed Exposure Draft on Leases. (PDF) June 26, 2013
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.