Independence of the Accounting Standard Setting Process
Quick Read: The AICPA supports the independent process through which the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) set accounting standards relied upon by users of financial reports. The AICPA will oppose legislative efforts to undermine the independent accounting standard setting process.
Issue: The AICPA strongly supports the independence of the U.S. and international accounting standard setting bodies, the Financial Accounting Standards Board in Norwalk, Connecticut, and the International Accounting Standards Board in London. Maintaining the independence of FASB and IASB’s standard setting process will keep accounting standards free from political influence and remains one of the AICPA’s top priorities.
Periodically, interest groups will urge Congress to legislate accounting standards. The accounting profession believes that legislation to change accounting standards wrongly confuses the role of accounting standards setters with the role of regulatory supervisors. The profession believes it would be a significant mistake – and harmful to the independent process – for Congress to subvert the role of FASB or IASB through legislative means. The primary objective of accounting is to meet the needs of investors and capital markets with transparent financial information. This goal cannot be safely met if Congress allows political influence to dictate accounting standards.
AICPA Position: The AICPA anticipates that lawmakers will periodically offer policy proposals that would legislate accounting principles. When this happens, the AICPA will vigorously oppose any such efforts to impair the independent accounting standard setting process.
AICPA Staff Contact
Kate Kiley, Director, Congressional & Political Affairs, Kate.Kiley@aicpa-cima.com