Not long ago the Securities and Exchange Commission Chief Accountant James Kroeker announced the establishment of periodic public roundtables called the “Financial Reporting Series.” The goal of the series is to bring together representatives of various stakeholder groups to discuss risks related to financial information provided to investors and how to improve them. I see this as an important and welcome development.
The SEC plans to hold these roundtables with a cross-section of investors, issuers, and auditors starting later this year, to discuss emerging issues and risks in the U.S. reporting system. Senior representatives of the Financial Accounting Standards Board and the Public Company Accounting Oversight Board will also act as observers; depending on the specific issue, other interested groups—banking regulators, for example—will also be invited as observers. My understanding is that the SEC staff expects to conduct about three Financial Reporting Series roundtables per calendar year, depending on the number and nature of issues that arise.
