Tuesday, the Financial Crisis Advisory Group (FCAG) issued its report on “the standard-setting implications of the global financial crisis.” The report is addressed to the International Accounting Standards Board (IASB) and the US Financial Accounting Standards Board (FASB) and provides recommendations centered around four main principles: (1) effective financial reporting, (2) limitations of financial reporting, (3) convergence of accounting standards, and (4) standard setter independence and accountability.

With respect to the FCAG report, Co-Chairman Hans Hoogervorst stressed “the importance of broadly accepted accounting standards that are the result of a thorough due process.” Fellow Co-Chairman, Harvey Goldschmid, also noted that “the independence and integrity of the standard setting process, including wide consultation, is critical to developing high quality, broadly accepted accounting standards responsive to the issues highlighted by the crisis.”

The FCAG will meet again in December to evaluate the progress made on the issue, but has offered to assist the IASB and FASB until that time.