Moreover, the SEC recently accepted a report from the
Committee on Improvements in Financial Reporting (CIFR),
which advances recommendations with respect to the
accounting standard-setting process to address some of
the deficiencies in financial reporting quality (Committee
on Improvements to Financial Reporting, 2008). With specific
relevance to the present study, the report encourages
the FASB, in developing standards, to increase the use of
clearly stated objectives and principles so that the standards
are responsive to investor and user needs (CIFR, p.
74). In addition, the CIFR called for formalized post-adoption
reviews of new standards to address interpretive
questions and reduce diversity of practice (CIFR, p. 62).