[Congressional Record (Bound Edition), Volume 155 (2009), Part 16]
[House]
[Pages 21234-21235]
[From the U.S. Government Publishing Office, www.gpo.gov]




       PROMOTING TRANSPARENCY IN FINANCIAL REPORTING ACT OF 2009

  Mr. MOORE of Kansas. Mr. Speaker, I move to suspend the rules and 
pass the bill (H.R. 2664) 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.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 2664

       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 2009''.

     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 of the 
     Chairperson, beginning in 2009, 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       (1) reassessing complex and outdated accounting standards;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''.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Kansas (Mr. Moore) and the gentleman from New York (Mr. Lee) each will 
control 20 minutes.
  The Chair recognizes the gentleman from Kansas.


                             General Leave

  Mr. MOORE of Kansas. Mr. Speaker, I ask unanimous consent that all 
Members have 5 legislative days within which to revise and extend their 
remarks on this legislation and to insert extraneous material thereon.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Kansas?
  There was no objection.
  Mr. MOORE of Kansas. I yield myself such time as I may consume.
  Mr. Speaker, I rise today in support of H.R. 2664, the Promoting 
Transparency in Financial Reporting Act, drafted by the gentleman from 
New York, Congressman Chris Lee.
  I commend his work on this bill, H.R. 2664. It is a bipartisan bill 
that is also sponsored by Congressmen David Scott, Geoff Davis, Mike 
Castle, and Adam Putnam.
  Following the financial crisis our country faced last year, it is 
clear that we need to improve the oversight and transparency of the 
financial services industry. This bill would require the Securities and 
Exchange Commission, the Financial Accounting Standards Board and the 
Public Company Accounting Oversight Board to provide annual testimony 
to Congress for 5 years. Their testimony will help us to understand and 
support their efforts to reduce the complexity in financial reporting 
and to provide more accurate and clear financial information to 
investors.
  Again, Mr. Speaker, I commend Congressman Lee for his work on this 
legislation, and I urge my colleagues to support it.
  I reserve the balance of my time.
  Mr. LEE of New York. I yield myself such time as I may consume.
  Mr. Speaker, I rise today in support of H.R. 2664, the Promoting 
Transparency in Financial Reporting Act.
  I would like to thank the cosponsors of this bipartisan measure, 
including Mr. Davis of Kentucky, who championed this proposal in 
earlier Congresses, Mr. Putnam, Mr. Castle, and Mr. Scott of Georgia.

[[Page 21235]]

  Every day, I hear from constituents who are experiencing a great 
amount of anxiety over what is happening to their portfolios--from 
younger families who are trying to save for their first homes or older 
workers who have had to put off long-planned retirements. While they 
certainly understand most of these losses can be attributed to the 
turmoil of our economy, we now know the role that faulty financial 
reporting, be it intentional or otherwise, played in affecting 
investors' decisions.
  This issue, of course, features prominently in ongoing discussions of 
regulatory reform frameworks, and rightly so. We won't be able to fully 
restore investor and consumer confidence unless we have a system that 
allows for the clearest and most accurate financial reporting. That's 
why we need transparency.
  It's not enough, however, just to pursue and to promote transparency 
for its own sake. Having run a business, I know that, if you want to 
have a healthy corporate environment, you have to have sound financial 
reporting. I also understand how time-consuming and costly these 
accounting processes can be. So it is critical, in bringing information 
to light, that we also take care to identify the complexities that trip 
up everyone from small businesses to large corporations and then pursue 
reforms that may simplify and improve the process.
  That's why, with this simple bipartisan measure, we would require 
annual congressional testimony by the Securities and Exchange 
Commission, by the Financial Accounting Standards Board and by the 
Public Company Accounting Oversight Board on efforts being undertaken 
to reduce the complexity and costs of financial reporting and to 
increase transparency for investors.
  Specifically, H.R. 2664 helps Congress exercise legitimate oversight 
authority to hold these institutions accountable for protecting 
taxpayers and for making progress on the following critical issues: 
First, reassessing complex and outdated accounting standards; second, 
increasing the usability of the existing accounting and auditing 
literature; third, developing principle-based accounting standards; 
fourth, encouraging the use and acceptance of interactive data; and 
fifth, promoting disclosure in plain English.
  This bipartisan Promoting Transparency in Financial Reporting Act 
represents a critical step towards protecting taxpayers by creating a 
process for simplifying and for improving our financial reporting 
framework. I urge the immediate passage of this important bipartisan 
legislation.
  I yield back the balance of my time.
  Mr. MOORE of Kansas. Mr. Speaker, the Promoting Transparency in 
Financial Reporting Act will help provide greater transparency and 
clarity for investors. I urge my colleagues to support this bill.
  I yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Kansas (Mr. Moore) that the House suspend the rules and 
pass the bill, H.R. 2664.
  The question was taken; and (two-thirds being in the affirmative) the 
rules were suspended and the bill was passed.
  A motion to reconsider was laid on the table.

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