Lobbying FASB On Accounting For Investments

Abstract

The development of SFAS No. 115, Accounting for Certain Investments in Debt and Equity Securities, serves as a case study illustrating the forces that underlie the standard setting process in the United States.  This study describes the events leading to the development of the exposure draft (ED) that preceded SFAS No. 115 and analyzes the contents of the comment letters received by FASB in response to the ED; it illustrates how compromises have helped FASB maintain its role as a private sector standard setter.