[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5438 Introduced in House (IH)]






107th CONGRESS
  2d Session
                                H. R. 5438

  To require the Securities and Exchange Commission to report to the 
             Congress on accounting for intangible assets.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 24, 2002

   Mr. Dooley of California introduced the following bill; which was 
            referred to the Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
  To require the Securities and Exchange Commission to report to the 
             Congress on accounting for intangible assets.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Valuation of Intangible Assets Act 
of 2002''.

SEC. 2. REPORT REQUIRED.

    (a) SEC Evaluation Required.--The Securities and Exchange 
Commission, in consultation with experts and practictioners from 
industry, academia, the accounting profession, and investors, shall--
            (1) evaluate the general usefulness of financial statements 
        prepared under generally accepted accounting principles in 
        providing accurate information to investors about intangible 
        assets and operating performance measures;
            (2) consider the impact that shortcomings in generally 
        accepted accounting principles have on securities market 
        volatility, capital allocation, and the ability of investors to 
        make sound judgments about valuation;
            (3) consider methods to better identify, value, and account 
        for purchased and internally generated intangible assets;
            (4) examine the general questions surrounding the role of 
        intangible assets in financial reporting in the economy; and
            (5) examine how enhanced disclosure can be accomplished 
        without exposing industries or companies to increased 
        litigation.
    (b) Deadline for Submission of Report.--Not later than 9 months 
after the date of the enactment of this Act, the Commission shall 
submit a report to the Congress on the evaluation required by 
subsection (a). Such report shall contain a detailed statement of the 
Commission's recommendations, findings, and conclusions, and may 
contain minority or individual member's views.
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