What can be learned from the FASB's process for SFAS No. 115

A commentary discusses the Johnson and Swieringa (1996) paper about the process surrounding adoption of SFAS 115. The process for the Statement reveals much about the nature and functioning of the Board. Johnson and Swieringa provide a thorough and useful chronology of the events and issues leading to adoption of SFAS 115. There are, however, many unanswered questions about the implications of the process surrounding SFAS 115. Three of those questions are: 1. Why do "official earnings" matter so much to preparers? 2. Can the FASB be expected to deal effectively with political and regulatory issues? 3. Is the FASB's conceptual framework a sufficient basis for financial reporting as a source of relevant (and reliable) information about businesses in the 21st century.