2. Create an independent federal financial accounting standards board Create an independent federal financial accounting standards board with the power to develop, publish, and interpret accounting principles and standards for the federal government, if a comprehensive set of accounting standards is not issued within 18 months. The FASAB chair should report to the Vice President by December 1994 on the status of the issuance of a comprehensive set of accounting standards. Should that report conclude that issuance of those standards will not be within the 18 months required, OMB, in consultation with Treasury and GAO, should prepare legislation by March 1995 to establish an independent board to set accounting standards. This board would be structured so as to not to conflict with the constitutional division of powers between the executive and legislative branches. This legislation should support the traditional division of powers between the executive and legislative branches by allowing an independent board to issue standards; OMB, the Department of the Treasury, and agencies to implement them; and GAO and inspectors general to audit against those standards. Where relevant, the legislation should consider adoption of the current board structure for membership, process, and operation. Also, it should consider any relevant existing structures, such as GASB and FASB, which independently issue accounting standards for state and local governments and public corporations.
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