FASB responds to SEC on principles-based accounting

California CPA, Sept, 2004

FASB recently responded to SEC recommendations regarding the adoption of a principles-based accounting system. The response included agreeing to SEC recommendations that FASB should:

* Issue objectives-oriented standards;

* Address deficiencies in the conceptual framework;

* Be the only organization setting authoritative accounting guidance in the United States;

* Continue its convergence efforts;

* Work to redefine the GAAP hierarchy;

* Increase access to authoritative literature; and

* Perform a comprehensive review of its literature to identify standards that are more rules-based and adopt a transition plan to change those standards.

For more, visit www.fasb.org/response_sec_study_july2004.pdf.>

COPYRIGHT 2004 California Society of Certified Public Accountants

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