Considerable political and social influence is wielded by financial statement preparers and users—those parties who are most interested in or affected by accounting standards. A premise of the FASB’s standard-setting process is that it should operate in full view of the public, affording interested parties ample opportunity to make their views known. The extensive procedural steps employed by the FASB in the standard-setting process supports this premise.
Required:
Write a brief report that describes why financial accounting standards inspire or encourage political action and involvement during the standard-setting process.