# Plain Language Summary: Responsible Accounting Standards Act of 2023

This bill aims to make the organization that sets accounting rules for American companies more transparent and accountable to Congress. Right now, the Financial Accounting Standards Board (FASB) is a private organization that decides how companies must report their financial information to investors and the public. The bill would require this organization to follow the same transparency and procedural rules that apply to government agencies, essentially treating it more like a public institution even though it's technically private.

The bill has three main requirements. First, when the accounting standards board creates new rules, it must follow procedures similar to what federal agencies do when they make new regulations—this means holding public hearings, accepting written comments from businesses and the public, and explaining the reasoning behind decisions. The board would also need to analyze how new rules affect businesses and the economy before implementing them. Second, the board's meetings must be open to the public, just like government agency meetings are required to be under the "Government in the Sunshine Act." This prevents important decisions from being made behind closed doors. Third, the head of the accounting standards board must testify before Congress every year to explain what the organization is doing and answer questions from lawmakers.

Who does this affect? Primarily, this impacts large and mid-sized companies that must follow these accounting standards, as well as investors who rely on financial reports to make investment decisions. The bill could slow down the process of creating new accounting rules since the board would need to follow more formal procedures and gather more public input. Some argue this adds necessary democratic oversight to an important financial institution, while others might worry it could make it harder for the accounting board to update rules quickly when needed. Either way, the changes are designed to give Congress and the public more say in how accounting standards are developed.

Responsible Accounting Standards Act of 2023

Luetkemeyer, Blaine

Responsible Accounting Standards Act of 2023 This bill requires the standard-setting bodies of accounting principles to comply with provisions generally required of federal agencies, including those that apply to rulemaking procedures, cost benefit analysis of certain actions, and open meeting requirements. The standard-setting bodies must also testify annually before Congress.