IB 
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 Fi-
nancial 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 Serv-
ices Committee of the Chairperson or a designee of the 
Chairperson of the Securities and Exchange Commission, 
the Financial Accounting Standards Board, and the Pub-
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lic Company Accounting Oversight Board, relating to 
their efforts to promote transparency in financial report-
ing. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Promoting Trans-
parency in Financial Reporting Act of 2006’’. 
SEC. 2. FINDINGS. 
Congress finds the following: 
(1) Transparent and clear financial reporting is 
integral to the continued growth and strength of our 
capital markets and the confidence of investors. 
(2) The increasing detail and volume of ac-
counting, auditing, and reporting guidance pose a 
major challenge to the quality and transparency of 
financial reporting. 
(3) The complexity of accounting and auditing 
standards in the United States has added to the 
costs and effort involved in financial reporting. 
SEC. 3. ANNUAL TESTIMONY ON REDUCING COMPLEXITY IN 
FINANCIAL REPORTING. 
The Securities and Exchange Commission, the Fi-
nancial Accounting Standards Board, and the Public 
Company Accounting Oversight Board shall annually pro-
vide oral testimony by their respective Chairpersons or a 
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designee of the Chairperson, beginning in 2007, and for 
5 years thereafter, to the Committee on Financial Services 
of the House of Representatives on their efforts to reduce 
the complexity in financial reporting to provide more accu-
rate and clear financial information to investors, includ-
ing— 
(1) reassessing complex and outdated account-
ing standards; 
(2) improving the understandability, consist-
ency, and overall usability of the existing accounting 
and auditing literature; 
(3) 
developing 
principles-based 
accounting 
standards; 
(4) encouraging the use and acceptance of 
interactive data; and 
(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 Finan-
cial 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 Ac-
counting Oversight Board, relating to their ef-
forts to promote transparency in financial report-
ing. 
JULY 17, 2006 
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union, 
and ordered to be printed 
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22:42 Jul 17, 2006
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