The US SEC's Advisory Committee on Improvements to Financial Reporting (ACIFR) has published its final report of recommendations to increase the usefulness of financial information to investors, while reducing the complexity of the financial reporting system to investors, preparers, and auditors. The report sets out 25 recommendations that the ACIFR believes could be implemented by the Commission, the Financial Accounting Standards Board (FASB), the Public Company Accounting Oversight Board (PCAOB), or their respective staff, as appropriate, without legislation.
The Committee's proposals to improve financial reporting are categorised into five main areas:
1. Increasing the usefulness of information in SEC reports
2. Enhancing the accounting standards-setting process
3. Improving the substantive design of new accounting standards
4. Delineating authoritative interpretive guidance
5. Clarifying guidance on financial restatements and accounting judgments