Accounting implications of Obama appointing Volcker

by Erin McCune on November 27, 2008

in Accounting, Current Events, Regulatory Environment

CFO.com points out that Paul Volcker has strong views on accounting topics that might soon become prominent fixtures of administration economic policy.

For example, here are topics/issues that he will undoubtedly have influence over (quoting CFO.com):

  • [His experience creating and then serving as head of International Accounting Standards Board and attempting to reform Anderson immediately after the Enron scandal] are all highly relevant in the midst of a financial collapse that has been widely blamed on accounting rules that, depending on your point of view, were either faulty or misapplied.
  • Should the United States adopt International Financial Reporting Standards, bringing its listed companies closer in line those of Europe and others around the globe? Or are recent efforts in that direction too quick to abandon U.S. GAAP, putting at risk the reputation of the U.S. capital markets as well policed?
  • What should be done about the auditing profession itself? Currently, corporate auditing is so concentrated among the Big Four accounting firms that many companies have trouble meeting independence requirements put in place by Sarbanes-Oxley. And audit firms themselves have repeatedly pushed for some level of indemnification against litigation.

Read the whole article here.

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