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Union Calendar No. 321 

109TH CONGRESS 

2D SESSION H. R. 5024 

[Report No. 109–565] 

To require annual oral testimony before the Financial Services Committee 

of the Chairperson or a designee of the Chairperson of the Securities 

and Exchange Commission, the Financial Accounting Standards Board, 

and the Public Company Accounting Oversight Board, relating to their 

efforts to promote transparency in financial reporting. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 28, 2006 

Mr. DAVIS of Kentucky (for himself, Mr. SCOTT of Georgia, and Mr. ISRAEL) 

introduced the following bill; which was referred to the Committee on Financial Services 

JULY 17, 2006 

Additional sponsors: Mr. CASTLE, Mr. SHAYS, Mr. GILLMOR, Mr. FEENEY, 

Mr. FITZPATRICK of Pennsylvania, and Mr. HINOJOSA

JULY 17, 2006 

Reported with an amendment, committed to the Committee of the Whole 

House on the State of the Union, and ordered to be printed 

[Omit the part struck through] 

A BILL 

To require annual oral testimony before the Financial Services Committee of the Chairperson or a designee of the 

Chairperson of the Securities and Exchange Commission, 

the Financial Accounting Standards Board, and the PubVerDate Aug 31 2005 22:42 Jul 17, 2006 Jkt 049200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6652 E:\BILLS\H5024.RH H5024

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•HR 5024 RH 

lic Company Accounting Oversight Board, relating to 

their efforts to promote transparency in financial reporting. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Promoting Trans5 parency in Financial Reporting Act of 2006’’. 

6 SEC. 2. FINDINGS. 

7 Congress finds the following: 

8 (1) Transparent and clear financial reporting is 

9 integral to the continued growth and strength of our 

10 capital markets and the confidence of investors. 

11 (2) The increasing detail and volume of ac12 counting, auditing, and reporting guidance pose a 

13 major challenge to the quality and transparency of 

14 financial reporting. 

15 (3) The complexity of accounting and auditing 

16 standards in the United States has added to the 

17 costs and effort involved in financial reporting. 

18 SEC. 3. ANNUAL TESTIMONY ON REDUCING COMPLEXITY IN 

19 FINANCIAL REPORTING. 

20 The Securities and Exchange Commission, the Fi21 nancial Accounting Standards Board, and the Public 

22 Company Accounting Oversight Board shall annually pro23 vide oral testimony by their respective Chairpersons or a 


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•HR 5024 RH 

1 designee of the Chairperson, beginning in 2007, and for 

2 5 years thereafter, to the Committee on Financial Services 

3 of the House of Representatives on their efforts to reduce 

4 the complexity in financial reporting to provide more accu5 rate and clear financial information to investors, includ6 ing— 

7 (1) reassessing complex and outdated account8 ing standards; 

9 (2) improving the understandability, consist10 ency, and overall usability of the existing accounting 

11 and auditing literature; 

12 (3) developing principles-based accounting 

13 standards; 

14 (4) encouraging the use and acceptance of 

15 interactive data; and 

16 (5) promoting disclosures in ‘‘plain English’’. 


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Union Calendar No. 321 

109TH CONGRESS 

2D SESSION H. R. 5024 

[Report No. 109

–565] 

A BILL 

To require annual oral testimony before the Finaning. forts to promote transparency in financial report- counting Oversight Board, relating to their ef- Standards Board, and the Public Company Ac- Exchange Commission, the Financial Accounting designee of the Chairperson of the Securities and cial Services Committee of the Chairperson or a 

JULY 17, 2006 

Reported with an amendment, committed to the Comand ordered to be printed mittee of the Whole House on the State of the Union, 


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