109 HR 5024 IH: Promoting Transparency in Financial Reporting Act of 2006 U.S. House of Representatives 2006-03-28 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

I 109th CONGRESS 2d Session H. R. 5024 IN THE HOUSE OF REPRESENTATIVES March 28, 2006 Mr. Davis of Kentucky (for himself, Mr. Scott of Georgia, and Mr. Israel) introduced the following bill; which was referred to the Committee on Financial Services A BILL To require annual oral testimony before the Financial Services Committee of the Chairperson or a designee of the Chairperson of the Securities and Exchange Commission, the Financial Accounting Standards Board, and the Public Company Accounting Oversight Board, relating to their efforts to promote transparency in financial reporting.

1.

Short title

This Act may be cited as the Promoting Transparency in Financial Reporting Act of 2006.

2.

Findings

Congress finds the following: (1)Transparent and clear financial reporting is integral to the continued growth and strength of our capital markets and the confidence of investors. (2)The increasing detail and volume of accounting, auditing, and reporting guidance pose a major challenge to the quality and transparency of financial reporting. (3)The complexity of accounting and auditing standards in the United States has added to the costs and effort involved in financial reporting.

3.

Annual testimony on reducing complexity in financial reporting

The Securities and Exchange Commission, the Financial Accounting Standards Board, and the Public Company Accounting Oversight Board shall annually provide oral testimony by their respective Chairpersons or a designee of the Chairperson, beginning in 2007, and for 5 years thereafter, to the Committee on Financial Services of the House of Representatives on their efforts to reduce the complexity in financial reporting to provide more accurate and clear financial information to investors, including— (1)reassessing complex and outdated accounting standards; (2)improving the understandability, consistency, and overall usability of the existing accounting and auditing literature; (3)developing principles-based accounting standards; (4)encouraging the use and acceptance of interactive data; and (5)promoting disclosures in plain English.