Securities and Exchange Commission Reaffirms Status Of Pronouncements Of The Financial Accounting Standards Board

The Securities and Exchange Commission today reaffirmed that it will continue to recognize pronouncements of the Financial Accounting Standards Board (FASB) as being generally accepted for purposes of filings with the Commission. The Commission's decision is in response to section 108 of the Sarbanes-Oxley Act of 2002, which, among other things, specifies the criteria that must be met in order for an accounting standard setter's work product to be recognized as generally accepted by the Commission.

SEC Chairman William Donaldson said, "The Commission has a long history of working productively with the FASB to maintain and improve accounting and financial reporting standards in the United States. We look forward to working with the FASB on the many important issues that lie ahead."

FASB Chairman Robert Herz said, "We appreciate the continued confidence and support of the SEC and look forward to working closely and effectively with the Commission and its staff, as well as with the new Public Company Accounting Oversight Board in ensuring quality financial reporting in the United States."

Commission Statement of Policy Reaffirming the Status of the FASB as a Designated Private-Sector Standard Setter, Release No. 33-8221