[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 834 Introduced in Senate (IS)]







110th CONGRESS
  1st Session
                                 S. 834

   To require annual testimony before Congress by the Securities and 
Exchange Commission, the Financial Accounting Standards Board, and the 
   Public Company Accounting Oversight Board, relating to efforts to 
              promote transparency in financial reporting.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 9, 2007

   Mr. Hatch introduced the following bill; which was read twice and 
    referred to the Committee on Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
   To require annual testimony before Congress by the Securities and 
Exchange Commission, the Financial Accounting Standards Board, and the 
   Public Company Accounting Oversight Board, relating to efforts to 
              promote transparency in financial reporting.

    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 ``Promoting Transparency in Financial 
Reporting Act of 2007''.

SEC. 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.
            (3) The complexity of accounting and auditing standards in 
        the United States has added to the costs and effort involved in 
        financial reporting.

SEC. 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 thereof, beginning in 2007, and for 5 years thereafter, 
to the Committee on Banking, Housing, and Urban Affairs of the Senate 
and the Committee on Financial Services of the House of Representatives 
on their efforts to reduce the complexity in financial reporting, so 
that investors are provided with more accurate and clear financial 
information. That testimony shall address--
            (1) 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''.
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