30 Jul 2002

The accounting reform legislation in the United States requires the SEC to conduct a study on the "adoption by the United States financial reporting system of a principles-based accounting system", including: the extent to which principles-based accounting and financial reporting exists in the United States; the length of time required for change from a rules-based to a principles-based financial reporting system; the feasibility of and proposed methods by which a principles-based system may be implemented; and a thorough economic analysis of the implementation of a principles-based system. The SEC must complete the study in one year and must submit its report to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives. .