The Financial Accounting Standards Board is a trusted, independent organization that sets all accounting standards. The CARES Act exempts companies from two of those standards.
May 19, 2020
By Elaine Cole
When Congress passed the Coronavirus Aid, Relief and Economic Security (CARES) Act to help stabilize the U.S. economy, few people noticed that it included provisions that exempt companies from complying with two accounting standards issued by the Financial Accounting Standards Board.
“Such actions threaten the FASB’s independence and set a dangerous precedent with serious potential to undermine confidence in corporate financial reporting,” writes Accounting Professor Shana Clor-Proell in Accounting Today. “While accounting standard-setting will never be perfect, it should result from an unbiased process.”
Clor-Proell adds that “Congress’s interference in accounting standards will become an unwelcome focus of special interests and lobbyists.”
Read the entire article here: https://www.accountingtoday.com/opinion/congress-should-leave-accounting-standards-to-fasb.