A separate bill introduced in the US House of Representatives would require the SEC to annually review "unresolved accounting standards issues" at FASB and report its findings to Congress. FASB would then need to issue a formal response to the SEC report.
Jenkins praised the two bills' sponsors for their committment to FASB's independence, but added, "We caution Congress that any legislation mandating particular actions or procedures by FASB can compromise the very independence that the legislation seeks to enhance."
Jenkins added that the replacement of current private-sector contributions to FASB with government-collected fees must be free of substantive conditions and political interference. "The greater the involvement of Congress and the exectuive branch in the activities of the FASB, the greater the potential for harmful pressures on the standard-setting process," said Jenkins.
FASB is the self-regulatory body that determines generally accepted accounting practices for US companies.