The Securities and Exchange Commission (SEC) reviewed the Financial Accounting Standards Board's (FASB) 2021 budget and annual accounting support fee. This process ensures that the FASB, which sets important accounting rules, has an independent and stable funding source, as required by the Sarbanes-Oxley Act of 2002. The SEC confirmed that the proposed fee aligns with the law, allowing FASB to continue its standard-setting activities. Additionally, the FASB's budget is subject to sequestration, meaning planned spending might be reduced to meet certain budgetary controls.
Simple Explanation
The SEC checked how much money the FASB will need to keep making important accounting rules to make sure they have enough and no extra. They also want to see how budget cuts might change what the FASB can do.