The FCAG was formed at the request of the International Accounting Standards Board and the US Financial Accounting Standards Board to consider financial reporting issues arising from the crisis. Co-chaired by Hans Hoogervorst, Chairman, AFM (the Netherlands Authority for the Financial Markets) and Harvey Goldschmid, former Commissioner, US Securities and Exchange Commission, the FCAG met six times from January to July 2009.
The report of the FCAG articulates four main principles and contains a series of recommendations to improve the functioning and effectiveness of global standard-setting. The chief areas addressed in the report are:
- Effective financial reporting
- Limitations of financial reporting
- Convergence of accounting standards
- Standard-setters’ independence and accountability
The principles and a summary of the recommendations are set out in the appendix to this press release. The FCAG will reconvene in December to review the progress made on its recommendations.
Commenting on the report, Hans Hoogervorst, Co-Chairman of the FCAG said:
I urge policymakers around the world to study the report and to take note of its conclusions, especially the importance of broadly accepted accounting standards that are the result of a thorough due process. The report highlights the importance but also the limits of financial reporting. Accounting was not a root cause of the financial crisis, but it has an important role to play in its resolution.
Harvey Goldschmid, Co-Chairman of the FCAG added:
As our report emphasizes, improved financial reporting will help restore the confidence of financial market participants and thereby serve as a catalyst for increased financial stability and sound economic growth. The independence and integrity of the standard-setting process, including wide consultation, is critical to developing high quality, broadly accepted accounting standards responsive to the issues highlighted by the crisis. It's been a great pleasure to work with Hans Hoogervorst and the other distinguished members of the Financial Crisis Advisory Group.
For press enquiries, please contact:
- Mark Byatt, Director of Corporate Communications, IASB
Telephone: +44 (0)20 7246 6472
- Sonja Horn, Communications Adviser, IASB
Telephone: +44 (0)20 7246 6463
- Neal McGarity, Director of Communications, US FASB
Telephone: +1 203 956-5347
- Jeffrey D. Mechanick, Assistant Director, FASB
Telephone: +1 203-956-5301