PricewaterhouseCoopers, KPMG, Deloitte & Touche and Ernst & Young said the letter was issued in response to proposed bills in Congress that recommend legislative action for the accounting for stock options. While all four accounting firms support "the mandatory expensing of stock options, whose fair value would be determined in a manner suitable for the reporting company," the firms are concerned that proposed bills "would restrict FASB's ability to establish accounting standards."

The letter to the Subcommittee on Capital Markets contends: "Interfering with the FASB's processes and judgments could unintentionally relegate the interests of investors to a subordinate role, and result in accounting that fails to convey economic substance."

The complete letter (PDF) is available through PricewaterhouseCoopers' Web site.