AICPA Welcomes Congressional Effort to Enhance Funding and Independence of Federal Government’s Accounting Standard-Setter

June 24, 2014

The American Institute of CPAs (AICPA) has expressed its support for legislation introduced in the U.S. House of Representatives that would help ensure the Federal Accounting Standards Advisory Board (FASAB) has adequate resources to carry out its mission and address important accounting principles for the federal government.

The Federal Financial Statement Transparency Act of 2014 (H.R. 4678) was introduced by U.S. Representatives James Renacci (R-Ohio) and John Carney (D-Del.) on May 20.

“The AICPA strongly supports the Federal Financial Statement Transparency Act of 2014, and specifically its goal of reinforcing the Federal Accounting Standards Advisory Board’s status as an independent entity,” AICPA President and CEO Barry C. Melancon, CPA, CGMA remarked in a statement. “Since our 1999 designation of FASAB as the accounting standard-setting body for federal entities under Rule 203 of the AICPA’s Code of Professional Conduct, there have been many improvements made by FASAB to ensure its independence. Importantly, H.R. 4678’s establishment of a sustainable funding mechanism for FASAB enhances the criterion of human and financial resources that is considered integral to its independence.”

Melancon noted that, as a CPA, Congressman Renacci recognizes the importance of enhancing FASAB’s funding and governance. “He, Representative Carney and the bill’s other co-sponsors are to be commended for their leadership on this issue,” Melancon added. “We welcome the introduction of this legislation and hope that in tandem with our ‘What’s at Stake?’ initiative – which provides a clear analysis of the federal government’s financial statements – it will elevate the dialogue about the nation’s fiscal health.”

In related activity, Diana Deem, a director of congressional and political affairs at the AICPA, briefed several lawmakers on the Institute’s legislative agenda during a May 29 meeting of the Bipartisan Working Group meeting co-chaired by Renacci and Carney. She used the opportunity to reinforce the AICPA’s commitment to collaborating with members of the Bipartisan Congressional Caucus on CPAs and Accountants and support of H.R. 4678.