(Economic Consequences) Presented below are comments made in the financial press. InstructionsPrepare responses to the requirements in each item.(a) Rep. John Dingell, at one time the ranking Democrat on the House Commerce Committee, threw his support behind theFASB’s controversial derivatives accounting standard and encouraged the FASB to adopt the rule promptly. Indicatewhy a member of Congress might feel obligated to comment on this proposed FASB standard.(b) In a strongly worded letter to Senator Lauch Faircloth (R-NC) and House Banking Committee Chairman Jim Leach(R-IA), the American Institute of Certified Public Accountants (AICPA) cautioned against government intervention inthe accounting standard-setting process, warning that it had the potential of jeopardizing U.S. capital markets. Explainhow government intervention could possibly affect capital markets adversely.

SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter3: Taxes On The Financial Statements
Section: Chapter Questions
Problem 49P
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(Economic Consequences) Presented below are comments made in the financial press.


Instructions
Prepare responses to the requirements in each item.
(a) Rep. John Dingell, at one time the ranking Democrat on the House Commerce Committee, threw his support behind the
FASB’s controversial derivatives accounting standard and encouraged the FASB to adopt the rule promptly. Indicate
why a member of Congress might feel obligated to comment on this proposed FASB standard.
(b) In a strongly worded letter to Senator Lauch Faircloth (R-NC) and House Banking Committee Chairman Jim Leach
(R-IA), the American Institute of Certified Public Accountants (AICPA) cautioned against government intervention in
the accounting standard-setting process, warning that it had the potential of jeopardizing U.S. capital markets. Explain
how government intervention could possibly affect capital markets adversely.

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