The Financial Accounting Standards Board came under fire last week as 22 of the nation's leading executives protested new derivatives rules. Responding to the likes of Citicorp's John S. Reed, FASB chairman Edmund L. Jenkins wrote Aug. 1:
In your letter of July 31, you state that over the last few weeks the board has developed a new proposal on accounting for derivatives and hedging and has not exposed it for public comment. You also state that the board has not adequately considered the proposal's impact on capital markets or the difficulties that companies will have in implementing the proposal. These assertions are not correct.