Speaking at the 96th annual conference of the Government Finance Officers Association (GFOA), Tom L.

Since the Enron collapse, it has become fashionable to criticize U.S. accounting standards and extol the virtues of "principles-based" standards. Some hoped this would improve the prospects for U.S. acceptance of the global standards set by the International Accounting Standards Board (IASB). But, on June 20, 2002, the IASB reversed direction and borrowed the U.S. approach to accounting for financial instruments.It took the IASB two weighty volumes to explain the "rules-based" approach in an exposure draft (ED).

On the eve on the mark-up of the Senate accounting reform bill, the Securities and Exchange Commission (SEC) announced it, too, will take up the issue of oversight of the auditing profession this week. The SEC has scheduled an open meeting on Thursday, June 20, 2002 to consider the issues. It plans to vote at that time on the release of proposed rules that would create the framework for a new private-sector regulatory scheme.

On June 12, 2002, the Securities and Exchange Commission (SEC) proposed rules designed to improve corporate reporting and restore investor confidence. The proposed rules would require senior executives to vouch for their company's reports, and they would expand the types of events that must be reported as they occur, rather than weeks or months later. Many of these reforms were discussed and/or announced during post-Enron Congressional hearings.

The New York Stock Exchange (NYSE) has drafted proposed rules and recommendations designed to guide the markets past a crisis of confidence that NYSE Chairman Richard Grasso calls "moments of madness" in the days following the Enron collapse.

On June 4, 2002, as defense attorneys called their final witness in the Andersen trial, former Andersen Chief Executive Officer (CEO) Joseph Berandino spoke out at the Commonwealth Club in Palo Alto on why auditors should not bear the whole burden of disasters such as the Enron debacle.In his first public appearance since his resignation in March, Mr. Berardino said he was "amazed" at the low auditing fees former Andersen clients have negotiated with their new auditors.

On June 3, 2002, the Securities and Exchange Commission (SEC) announced the settlement of an administrative enforcement action against Microsoft Corporation. The case involves allegations that Microsoft used "cookie jar accounting" to smooth earnings through adjustments to reserves.Commissioner Isaac Hunt explained to Reuters, "It's a cease-and-desist order.

Stanford Accounting Professor Stefan Reichelstein

As part of post-Enron accounting reforms, lawmakers are considering government funding for the Financial Accounting Standards Board (FASB), the organization that sets U.S. accounting standards. This article explains the facts about FASB's funding and asks your input. To help you sort through the issues, below is a summary of the two main concerns, including explanations of FASB's current funding. The explanations incorporate insights provided by spokespersons for the American Institute of CPAs (AICPA) and Financial Accounting Foundation (FAF), the board that oversees FASB.