The SEC established the Advisory Committee on Improvements to Financial Reporting. The Committee will examine the U.S. financial reporting system with the goals of reducing unnecessary complexity and making information more useful to investors.
The Committee will consist of not more than 18 members. It will be chaired by Robert Pozen, Chairman of MFS Investment Management, and will function solely as an advisory body, providing advice and recommendations to the SEC.
The Committee will consider:
- the current approach to setting financial accounting and reporting standards;
- the current process of regulating compliance by registrants and financial professionals;
- the current system for delivering financial information to investors, and the value; and
- the costs of current accounting and reporting standards, among other areas of inquiry.
The initial termination date of the Committee is August 2008, at which time it is expected the Committee will make recommendations to the SEC.
Please click http://www.sec.gov/news/press/2007/2007-123.htm to access the release announcing the formation of the Committee.