FASB Chairman cautions on proposed legislation.

• Author: Heffes, Ellen M.
• Position: Domestic - Financial Accounting Standards Board Chairman Edmund L. Jenkins - Brief Article

Commenting on two bills introduced in Congress in March that include provisions concerning the Financial Accounting Standards Board (FASB), Chairman Edmund L. Jenkins sent a cautionary note: "We appreciate the commitment to supporting and strengthening the FASB's independence embodied in the proposed legislation, but we caution Congress that any legislation mandating particular actions or procedures by the FASB can compromise the very independence that the legislation seeks to enhance."

"The Investor Confidence in Public Accounting Act of 2002," introduced on March 7 by Sens. Christopher J. Dodd (D-Conn.) and Jon Corzine (D-N.J.) would require that the Securities and Exchange Commission (SEC) recognize generally accepted accounting principles established by the FASB if certain qualifications are met: that the FASB be funded solely by "fees and charges assessed against each issuer" and "by revenues collected from the sale of materials and publications produced by that...