This week, Congressman Blaine Luetkemeyer (MO-3) introduced the Responsible Accounting Standards Act of 2023, directing the Financial Accounting Standards Board (FASB) to report annually to Congress and abide by the same rulemaking guidelines in place for every federal financial regulator.

“My bill would require FASB and its overseer, FAF, to consider the impact their accounting principles will have on the U.S. economy, market stability, and availability of credit – something FASB has admitted to me they did not consider while promulgating the Current Expected Credit Loss (CECL) standard. This bill will not take away FASB’s independence, but it will force them to perform the due diligence they have proven unwilling to do,” Rep. Luetkemeyer said.  

Background: FASB is an independent entity meant to set accounting standards for public U.S. companies. Like other bureaucracies, it remains vulnerable to political pressure and, if left unchecked, could wield its influence to push a radical agenda. The Responsible Accounting Standards Act of 2023 puts reasonable guardrails in place to ensure FASB remains independent, transparent, and fair. 

Read the full bill HERE.