Lawmaker Questions Accounting Proposal
Rep. Marge Roukema, chairwoman of the House Banking subcommittee on Finance and Consumer Credit raised concern regarding a proposal that has been submitted by an AICPA taskforce. The proposal takes issue with the ability of banks to reserve against unspecified losses.
The proposal addresses a recommendation that financial institutions should be limited in their ability to reserve for anticipated losses in loan portfolios.
Roukema also questions how a proposal initiated by the AICPA can have an influence over guidelines set by the SEC and various banking regulators. She’s requesting the SEC to also report on how it is handling concerns regarding the level of loan loss reserves of any publicly traded financial institutions.
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Which isn’t completely true. I mean, occasionally I drop by when I manage to sneak out of the nonstop frat party over at Going Concern, but I’m mostly a wallflower over there. I’m happy to say that I’ve been given express permission (or explicit orders, if you like) to wander over here to AccountingWEB more often.
Why is that, you might ask? My job is to replace the irreplaceable Gail Perry as Editor-in-Chief. What does that mean? I don’t really know! I think it’ll be fun getting a feel for things, throwing in my own thoughts here and there, and listening to the discussions you’re having about the accounting profession.