New Accounting Standards Must Consider Risk: Expert

Law360, New York (May 21, 2010, 7:45 PM EDT) -- The chief accountant of the U.S. Securities and Exchange Commission told a congressional subcommittee Friday that new federal accounting standards need to better portray a company's risk exposure.

It's particularly important that the new standards, a merger between U.S. Generally Accepted Accounting Principles and the International Financial Reporting Standards, measure risk taken on by foreign companies and so-called special purposes vehicles, James Kroeker told the House Financial Services Committee's subcommittee on capital markets, insurance and government-sponsored enterprises.

Special purposes vehicles are corporate legal entities created to...
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