Intermediate Accounting 14th Edition

Published by Wiley
ISBN 10: 0470587237
ISBN 13: 978-0-47058-723-2

Chapter 1 - Financial Accounting and Accounting Standards - Concepts for Analysis - Instructions - Page 30: CA1-20e

Answer

The motivation behind why the letter was sent to Congress was to add extra weight on the FASB to defer or drop the issuance of a standard on derivatives. However, in similar cases, when the business network dislikes the appropriate response proposed by the FASB, it resorts to campaigning individuals from Congress. The campaigning endeavors, for the most part, include creating some sort of enactment that will invalidate the standard.

Work Step by Step

Now and again, endeavors include testing the FASB's position to create controls in specific territories with extra Congressional oversight.
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