A letter has been issued to the heads of Senate Banking Committee by the American Institute of CPA’s, pledging them not to permit the systemic risk regulator to amend the accounting services standards in the financial regulatory reform legislation which they are they are planning out.
This letter is basically an effect of a letter sent to the Banking Committee by the trade groups, who pressurized the committee heads for a Bill that had been undermined in the financial regulatory reform legislation of December. This bill included the authority of the Financial Stability Council to alter and revise the accounting standards that could be dangerous for the stability of the U.S. financial systems.
The letter sent by the industry groups asked for considering accounting policy as part of financial reform and “to address potential systemic risks associated with accounting policy.” However, AICPA responded in its own way and propelled a response to the traders’ letter in which they protested to the fact that systemic risks can be linked with accounting policy and urged the requirement of an independent accounting standard-setting process for financial accounting services.
AICPA in conjunction with the other accounting groups has enforced to dilute this bill in the House legislation and retain SEC’s supervision of the Financial Accounting Standards Board and to ensure the autonomy of the standard-setting process. According to the final bill, only the council can propose and submit comments to the accounting standard controllers.
You can know more about accounting and tax policies through online accounting services.
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