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The AAO Weblog covers accounting issues and current events as they relate the practice of investment analysis. All posts prior to September, 2007 are in the public domain, but after September 4, only subscribers to The Analyst's Accounting Observer will see all posts going forward. Only selected, occasional posts will be released to the public domain from September 4 forward.

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Summer At The SEC

Location: Blogs AAO Weblog (Public)
Posted by: Jack Ciesielski	6/21/2006 6:39 AM
The calendar just turned to the lazy, hazy, crazy days of summer. And it feels like it here in Baltimore: our usual sultry summer weather arrived a bit earlier, complete with our special brand of humidity and smog that just hits you like a steamroller and leaves you feeling like you inhaled a dirty sponge. Down the road in DC, they've been busy in the last few days leading up to the turn of the calendar page. Maybe they're trying to get things done before the infamous government vacation season goes into full swing. Here's a quick catch-up of some of the goings-on in DC that'll eventually affect accounting one way or another, whether investors realize it or not. Let's take 'em in descending hierarchical order, shall we? At the top: a new boss at the PCAOB. William McDonough, the PCAOB's second chairman (don't forget William Webster) stepped down last fall. His replacement has finally been named: Mark Olson, former Federal Reserve Board governor. As you'd expect, he's got a lengthy banking background, including a stint as president of the American Bankers Association. What will be interesting to watch: the FASB and the SEC are more interested in fair value accounting than ever. Exhibit one: we've got the FASB's "fair value option" project coming to fruition (possibly) by year end. No judgments here about Mr. Olson, but the banking industry has often opposed fair value accounting in most forms. Maybe there'll be some interesting tension as fair value reporting moves forward. And maybe not. But keep it in mind. Moving down the hierarchy: founding member of the PCAOB Kayla Gillan has been reappointed to the Board - though I can't tell from the press release how long her term will be. Waayyy down the hierarchy - yet near and dear to chairman Cox's heart: new guinea pigs for the XBRL experiment. Automatic Data Processing, Inc., Ford Motor Company, Ford Motor Credit Company, and Radyne Corporation all joined in. That brings the total up to 24 in the pilot program. Great! Only about 14, 976 more registrants to go. I hope the wait will be worth it. * * * * * * * * * * Finally, a minor SEC story. Amusing, nonetheless. Last December, the Commission issued a proposal that would make proxy materials available electronically. In (very) brief: investors would be advised that their proxy materials were waiting for them to be plucked off the internet. No more mailmen wearing trusses, no more pounds of paper in the recycling bin to go out in March and April for many households. Who wouldn't like the idea? Not everyone, it seems. There have been some consumer protection concerns raised about the idea: not everyone might get the message that there's news waiting for them, and if there's something like a postcard being sent to notify shareholders, private information might at risk. Who's the consumer advocate worrying about matters like these? None other than the U.S. Postal Service, who would definitely be the loser in this kind of reporting regime. Here's a link to their comment letter. I wonder how much postal rates would increase if the proposal results in a major reduction of mailings.

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