Page:United States Statutes at Large Volume 116 Part 1.djvu/795

 PUBLIC LAW 107-204-^ULY 30, 2002 116 STAT. 769 "(2) ANNUAL REPORT. —^A standard setting body described in paragraph (1) shall submit an annual report to the Commission and the public, containing audited financial statements of that standard setting body.". (b) COMMISSION AUTHORITY. —The Commission shall promul- Regulations, gate such rules and regulations to carry out section 19(b) of the Securities Act of 1933, as added by this section, as it deems necessary or appropriate in the public interest or for the protection of investors. (c) No EFFECT ON COMMISSION POWERS.— Nothing in this Act, including this section and the amendment made by this section, shall be construed to impair or limit the authority of the Commission to establish accounting principles or standards for purposes of enforcement of the securities laws. (d) STUDY AND REPORT ON ADOPTING PRINCIPLES-BASED ACCOUNTING.— (1) STUDY.— (A) IN GENERAL.— The Commission shall conduct a study on the adoption by the United States financial reporting system of a principles-based accounting system. (B) STUDY TOPICS. —The study required by subparagraph (A) shall include an examination of— (i) the extent to which principles-based accounting and financial reporting exists in the United States; (ii) the length of time required for change from a rules-based to a principles-based financial reporting system; (iii) the feasibility of and proposed methods by which a principles-based system may be implemented; and (iv) a thorough economic analysis of the implementation of a principles-based system. (2) REPORT.—Not later than 1 year after the date of enactment of this Act, the Commission shall submit a report on the results of the study required by paragraph (1) to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives. SEC. 109. FUNDING. 15 USC 7219. (a) IN GENERAL.— The Board, and the standard setting body designated pursuant to section 19(b) of the Securities Act of 1933, as amended by section 108, shall he funded as provided in this section. (b) ANNUAL BUDGETS. —The Board and the standard setting body referred to in subsection (a) shall each establish a budget for each fiscal year, which shall be reviewed and approved according to their respective internal procedures not less than 1 month prior to the commencement of the fiscal year to which the budget pertains (or at the beginning of the Board's first fiscal year, which may be a short fiscal year). The budget of the Board shall be subject to approval by the Commission. The budget for the first fiscal year of the Board shall be prepared and approved promptly following the appointment of the initial five Board members, to permit action by the Board of the organizational tasks contemplated by section 101(d). (c) SOURCES AND USES OF FUNDS.—

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