1. Short title
This Act may be cited as the “Responsible Accounting Standards Act of 2019”.
Responsible Accounting Standards Act of 2019
A BILL
To amend the Securities Act of 1933 to require the Securities and Exchange Commission to issue a rule to apply the Administrative Procedure Act to the adoption of accounting principles by the standard setting body, and to require the standard setting body to consider, in adopting accounting principles, the impact such principles will have on the broader U.S. economy, market stability, and availability of credit.
2. Administrative procedures for adoption of accounting principles
Section 19(b) of the Securities Act of 1933 (15 U.S.C. 77s(b)) is amended by adding at the end the following:
“(3) Administrative procedures for adoption of accounting principles—The Commission shall issue a rule requiring a standard setting body described in paragraph (1) to follow procedures when adopting an accounting principle that are as close as practicable to those requirements for a Federal agency issuing a rule under chapter 5 of title 5, United States Code (commonly referred to as the “Administrative Procedure Act”).”
3. Consideration of the impact of accounting principles on the broader U.S. economy, market stability, and availability of credit
In general— Section 19(b)(1)(A)(v) of the Securities Act of 1933 (15 U.S.C. 77s(b)) is amended by inserting after “investors” the following: “, and the impact such accounting principles will have on the broader U.S. economy, market stability, and availability of credit (particularly for low- and moderate-income borrowers)”.
Report— Not later than the end of the 6-month period beginning on the date of enactment of this Act, any standard setting body described in section 19(b)(1) of the Securities Act of 1933 shall issue a report to the Securities and Exchange Commission and the Congress containing a list of changes the standard setting body has made or will make in order to ensure that the standard setting body takes into consideration the impact of accounting principles on the broader U.S. economy, market stability, and availability of credit, as required by the amendment made under subsection (a).