A group formed to advise accounting rule makers on how to navigate the financial crisis has issued its recommendations, and the suggestions are aimed more at other bodies than the rules or the rule makers themselves.

The Financial Crisis Advisory Group says politicians and other special interest groups should keep their noses out of accounting rules and quit trying to bend accounting rules to achieve economic or other financial objectives. It’s essentially the same candle that Bob Herz, chairman of the Financial Accounting Standards Board has been carrying for the past several months—that accounting rules are meant to serve investors and shouldn’t be changed to suit regulatory objectives.

FASB and the International Accounting Standards Board formed the FCAG as markets crumbled and pressure began mounting to change accounting rules, most notably requirements to state fair values for assets that were languishing on financial institution and other corporate balance sheets. The group met several times to consider how FASB and IASB should look at accounting rules in light of market events.

The FCAG final report says financial reporting is meant to provide unbiased, transparent, relevant information on business performance—and it depends on high-quality accounting standards, as well as consistent and faithful application and enforcement of standards, to provide such information. The report says markets must acknowledge the limitations of financial reporting, however, most notably that it provides only a snapshot of economic circumstances and not perfect insight.

The group implores FASB and IASB to continue to work toward establishing a single set of high-quality accounting standards to establish more consistency globally, and it implores political and special interest groups to quit trying to pressure FASB and IASB to bend the rules.

In a prepared statement, co-chairs Hans Hoogervorst and Harvey Goldschmid called for independence in the accounting standard-setting process. “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,” said Hoogervoorst.

Goldschmid said better financial reporting will help restore confidence in capital market participants. “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,” he said.

Accounting rule makers have formed an international all-star team to help chart a path out of the current financial crisis.

The Financial Crisis Advisory Group, formed by the Financial Accounting Standards Board and the International Accounting Standards Board, is tasked with helping the rule-making bodies sort out the standard-setting implications of the current global financial crisis and potential changes to the global regulatory environment.

The advisory group won’t try to establish consensus or recommendations, but will provide input to FASB and IASB through group meetings. FASB and IASB plan for the group to meet on a rotating basis in New York and in London for only about six months or less. Meetings generally will be public, although co-chairs Harvey Goldschmid, former commissioner with the Securities and Exchange Commission, and Hans Hoogervorst, chairman of the Netherlands Authority for the Financial Markets, have the discretion to hold private sessions as well.

FASB and IASB said the makeup of the advisory group includes senior leaders with broad experience in international financial markets and an interest in the transparency of financial reporting information. U.S. representatives on the 18-member advisory group include John Bogle, founder of Vanguard; Jerry Corrigan, former president of the New York Federal Reserve Bank; Gene Ludwig, former Controller of the Currency; and Don Nicolaisen, former chief accountant for Securities and Exchange Commission. Observers represent the Basel Committee of Banking Supervisors, the Committee of European Securities Regulators, the International Association of Insurance Supervisors, the Japan Financial Services Agency, and the SEC.

Although the group has a short shelf-life, Goldschmid says that doesn’t mean results will come quickly. “There is much to be considered, and we will proceed as quickly as possible, with an understanding these are complex issues with large public policy stakes and many interdependencies,” he said in a prepared statement. “There are likely to be few quick fixes.”

Hoogervorst says the diversity and seniority of the group “will help to ensure that any enhancements to financial reporting are considered in the context of the broader financial system and measured against a benchmark of enhancing investor confidence.”