I 
111TH CONGRESS 
1ST SESSION H. R. 1349 
To establish the Federal Accounting Oversight Board to approve and oversee 
accounting principles and standards for the purposes of the Federal 
financial regulatory agencies, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 5, 2009 
Mr. PERLMUTTER (for himself and Mr. LUCAS) introduced the following bill; 
which was referred to the Committee on Financial Services 
A BILL 
To establish the Federal Accounting Oversight Board to ap-
prove and oversee accounting principles and standards 
for the purposes of the Federal financial regulatory agen-
cies, and for other purposes. 
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 ‘‘Federal Accounting 
Oversight Board Act of 2009’’. 
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SEC. 2. THE FEDERAL ACCOUNTING OVERSIGHT BOARD. 
(a) ESTABLISHMENT.—There is hereby established 
the Federal Accounting Oversight Board (hereinafter in 
this Act referred to as the ‘‘FAOB’’). 
(b) DUTIES.— 
(1) APPROVAL OF ACCOUNTING POLICY.—The 
FAOB shall approve and oversee accounting prin-
ciples and standards for purposes of the Federal fi-
nancial regulatory agencies and reporting require-
ments required by such agencies. In approving and 
overseeing such accounting principles and standards, 
the FAOB shall consider— 
(A) the extent to which accounting prin-
ciples and standards create systemic risk expo-
sure for— 
(i) the United States public; 
(ii) the United States financial mar-
kets; and 
(iii) global financial markets; 
(B) the extent to which various accounting 
principles and standards resolve questions con-
cerning liquid and illiquid instruments; 
(C) whether certain accounting principles 
and standards should apply to distressed mar-
kets differently than well-functioning markets; 
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(D) the balance between investors’ need to 
know a value of a company or financial institu-
tion’s balance sheet at any given time versus fi-
nancial regulators’ responsibility to examine a 
company or financial institution’s capital and 
value on both a liquidation and going concern 
basis; 
(E) the accuracy and transparency of fi-
nancial statements; 
(F) the ability of investors and regulators 
to accurately judge the current and long term 
financial condition of companies and financial 
institutions from their financial statements; 
(G) the need for accounting principles and 
standards to take into account the need for fi-
nancial institutions to maintain adequate re-
serves to cover expected losses from assets held 
by such institution; 
(H) the extent to which accounting prin-
ciples and standards can improve the usefulness 
of financial reporting by focusing on the charac-
teristics of relevance and reliability and on the 
qualities of comparability and consistency; 
(I) the extent to which such principles and 
standards can be kept current to reflect 
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changes in methods of doing business and 
changes in the economic environment; and 
(J) any other factors that the FAOB con-
siders appropriate. 
(2) CONSULTATION AND PUBLIC COMMENT.— 
(A) IN GENERAL.—In carrying out its du-
ties, the FAOB may consult with such organi-
zations or entities as the FAOB believes to be 
appropriate, including, but not limited to, the 
Financial Accounting Standards Board, the 
International Accounting Standards Board, or 
the Public Company Accounting Oversight 
Board. 
(B) CONSULTATION; PUBLIC COMMENT.— 
The FAOB shall, before approving a specific 
accounting principle or standard— 
(i) solicit input from financial regu-
lators on the principle or standard, includ-
ing from the Comptroller of the Currency, 
the Director of the Office of Thrift Super-
vision, the Federal Housing Finance Agen-
cy, the Administrator of the National 
Credit Union Administration, the Presi-
dent of the National Association of Insur-
ance Commissioners, and the Chairman of 
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the Commodities Future Trading Commis-
sion; and 
(ii) provide the public with an oppor-
tunity to comment on the principle or 
standard. 
(C) SAFETY AND SOUNDNESS CONSIDER-
ATIONS.—If any Federal financial regulatory 
agency determines that any accounting principle 
or standard approved by the FAOB, or any ac-
counting principle or standard in effect on the 
effective date of this Act, has an adverse effect 
on the safety and soundness of the entities it 
regulates, the health of the United States finan-
cial system, or the United States economy, the 
agency may request authorization from the 
FAOB to review such accounting principle or 
standard for the agency, and the FAOB shall 
determine whether the standard or principle 
should continue to be applied or instead re-
moved on either a temporary or permanent 
basis. The FAOB shall have 30 days or such 
additional time as it may need up to 180 days 
to review and act on such request. The agency 
may exercise discretion in ignoring the principle 
or standard on an emergency or temporary 
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basis for up to 30 days unless otherwise ex-
tended by FAOB. The FAOB shall also con-
sider whether any change authorized under this 
paragraph should be permanently approved by 
the FAOB as an accounting principle or stand-
ard. 
(3) REPORTS.—The FAOB shall, not less often 
than yearly, compile a report on the accounting prin-
ciples and standards that the FAOB has reviewed 
and approved either temporarily or permanently, 
and— 
(A) submit such report to the Congress; 
(B) submit such report to the Financial 
Accounting Standards Board; 
(C) submit such report to the International 
Accounting Standards Board; and 
(D) make such report available to the pub-
lic on a website. 
(c) MEMBERSHIP.— 
(1) IN GENERAL.—The FAOB shall consist of 
five members: 
(A) The Chairman of the Board of Gov-
ernors of the Federal Reserve System. 
(B) The Secretary of the Treasury. 
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(C) The Chairman of the Securities and 
Exchange Commission. 
(D) The Chairman of the Federal Deposit 
Insurance Corporation. 
(E) The Chairman of the Public Company 
Accounting Oversight Board. 
(2) CHAIRMAN.—The Chairman of the Board of 
Governors of the Federal Reserve System shall serve 
as the chairman of the FAOB. 
(d) FUNDING.— 
(1) ANNUAL BUDGET.—The FAOB shall estab-
lish a budget for each fiscal year. 
(2) SOURCE
OF
FUNDS.—The budget of the 
FAOB shall be payable from annual support fees, in 
accordance with this subsection. 
(3) ANNUAL SUPPORT FEE FOR THE FAOB.— 
(A) 
ESTABLISHMENT
OF
FEE.—The 
FAOB shall establish a reasonable annual sup-
port fee (or a formula for the computation 
thereof), as may be necessary or appropriate to 
establish and maintain the FAOB. Such fee 
may also cover costs incurred in the FAOB’s 
first fiscal year (which may be a short fiscal 
year), or may be levied separately with respect 
to such short fiscal year. 
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(B) ASSESSMENTS.—The rules of the 
FAOB under subparagraph (A) shall provide 
for the equitable allocation, assessment, and 
collection by the FAOB (or an agent appointed 
by the FAOB) of the fee established under sub-
paragraph (A), among registered public ac-
counting firms, allowing for differentiation 
among classes of firms, as appropriate. 
(4) LIMITATION ON FEE.—The amount of fees 
collected under this subsection for a fiscal year on 
behalf of the FAOB shall not exceed the recoverable 
budget expenses of the FAOB (which may include 
operating, capital, and accrued items), referred to in 
paragraph (2). 
(5) FEE REQUIREMENT FOR REGISTRATION BY 
THE
PUBLIC
COMPANY
ACCOUNTING
OVERSIGHT 
BOARD.—Section 102 of the Sarbanes-Oxley Act of 
2002 (15 U.S.C. 7212) is amended by adding at the 
end the following new subsection: 
‘‘(g) ANNUAL FEE TO SUPPORT THE FEDERAL AC-
COUNTING OVERSIGHT BOARD.—In addition to any other 
fees required by this title, a registered public accounting 
firm shall pay the annual support fee allocated to the reg-
istered public accounting firm under section 2(d) of the 
Federal Accounting Oversight Board Act of 2009.’’. 
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(6) START-UP
EXPENSES.—From the unex-
pended balances of the appropriations to the Secu-
rity and Exchange Commission for fiscal year 2009, 
the Secretary of the Treasury is authorized to ad-
vance to the FAOB funds not to exceed the amount 
necessary to cover the expenses of the FAOB during 
its first fiscal year (which may be a short fiscal 
year). 
(e) PAY; TRAVEL
EXPENSES.—Members of the 
FAOB shall not receive any additional pay, allowances, or 
benefits by reason of their service on the FAOB, except 
that each member shall receive travel expenses, including 
per diem in lieu of subsistence, in accordance with applica-
ble provisions under subchapter I of chapter 57 of title 
5, United States Code. 
(f) MEETINGS.—The FAOB shall meet at the call of 
the Chairman of the FAOB. 
(g) STAFF.— 
(1) IN GENERAL.—The FAOB may appoint and 
fix the pay of any personnel that the FAOB con-
siders appropriate to carry out its duties under this 
Act. 
(2) EXPERTS AND CONSULTANTS.—The FAOB 
may procure temporary and intermittent services 
under section 3109(b) of title 5, United States Code. 
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(3) STAFF OF AGENCIES.—Upon request of the 
FAOB, the head of any Federal department or agen-
cy may detail, on a reimbursable basis, any of the 
personnel of that department or agency to the 
FAOB to assist it in carrying out its duties under 
this Act. 
(h) POWERS.— 
(1) HEARINGS
AND
SESSIONS.—The FAOB 
may, for the purpose of carrying out this Act, hold 
hearings, sit and act at times and places, take testi-
mony, and receive evidence as the FAOB considers 
appropriate and may administer oaths or affirma-
tions to witnesses appearing before it. 
(2) POWERS OF MEMBERS AND AGENTS.—Any 
member or agent of the FAOB may, if authorized by 
the FAOB, take any action which the FAOB is au-
thorized to take by this Act. 
(3) OBTAINING
OFFICIAL
DATA.—The FAOB 
may secure directly from any department or agency 
of the United States information necessary to enable 
it to carry out this Act. Upon request of the Chair-
man of the FAOB, the head of that department or 
agency shall furnish that information to the FAOB. 
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SEC. 3. REQUIRING AGENCIES TO CONFORM TO FAOB AP-
PROVED 
ACCOUNTING 
PRACTICES 
AND 
STANDARDS. 
Notwithstanding any other provision of law, a Fed-
eral financial regulatory agency shall, not later than 180 
days, or within a shorter time period as the FAOB may 
prescribe, after the FAOB approves an accounting prin-
ciple or standard, ensure that all rules and regulations 
made by such agency conform with the approval made by 
the FAOB. 
SEC. 4. TRANSFER OF STANDARD SETTING BODY OVER-
SIGHT AUTHORITY FROM THE SEC TO THE 
FAOB. 
(a) SECURITIES ACT OF 1933.—Section 19(b) of the 
Securities Act of 1933 (15 U.S.C. 77s(b)) is amended— 
(1) by striking ‘‘ Commission’’ each place it ap-
pears and inserting ‘‘Federal Accounting Oversight 
Board’’; 
(2) by striking ‘‘subsection (a) and under sec-
tion 13(b) of the Securities Exchange Act of 1934’’ 
and inserting ‘‘the Federal Accounting Oversight 
Board Act of 2009’’; and 
(3) by striking ‘‘subsection (a) and section 
13(b) of the Securities Exchange Act of 1934’’ and 
inserting ‘‘the Federal Accounting Oversight Board 
Act of 2009’’. 
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SEC. 5. DEFINITIONS. 
For the purposes of this Act: 
(1) FEDERAL FINANCIAL REGULATORY AGEN-
CY.—The term ‘‘Federal financial regulatory agen-
cy’’ means— 
(A) the Office of Thrift Supervision; 
(B) the Federal Deposit Insurance Cor-
poration; 
(C) the National Credit Union Administra-
tion; 
(D) the Securities and Exchange Commis-
sion; 
(E) the Federal Reserve System; and 
(F) the Office of the Comptroller of the 
Currency. 
(2) REGISTERED PUBLIC ACCOUNTING FIRM.— 
The term ‘‘registered public accounting firm’’ shall 
have the same meaning as in section 2(a)(12) of the 
Sarbanes-Oxley 
Act 
of 
2002 
(15 
U.S.C. 
7201(a)(12)). 
(3) SECURITIES
LAWS
DEFINED.—The term 
‘‘securities laws’’ shall have the same meaning as in 
section 3(a)(47) of the Securities Exchange Act of 
1934 (15 U.S.C. 78c(a)(47)). 
Æ 
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