SEC to consider reporting changes
By Ian Katz, Bloomberg News
Monday, August 4, 2008
The U.S. Securities and Exchange Commission will begin
considering some of the 25 proposals from an advisory group
seeking to make financial reporting less complex, Chairman
Christopher Cox said.
The Advisory Committee on Improvements to Financial Reporting,
in proposals delivered to the SEC, suggested that public
companies be required to restate financial results less
A "material error that is not important to a current investment
decision" shouldn't require a restatement, the committee said.
The committee also urged the Financial Accounting Standards
Board to take a "judicious approach to further expansions of
fair value" accounting, a process used by companies to put a
price on difficult-to-value assets. Companies should instead be
required to file a "reconciliation" that would include changes
in the fair value.