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Critically examine and discuss the impact of lobbying on standard setting in accounting. Illustrate your discussion / your analy - Essay Example
Finance & Accounting
Pages 8 (2008 words)
Impact of lobbying on standard setting in accounting Contents Introduction 3 Issues involved: Lobbying on standard setting in accounting 3 Analysis: impacts of lobbying on standard setting 5 Arguments 7 Conclusion 8 References 10 Introduction The accounting framework is standardized by the Financial Standards Accounting Board (FASB) through various rules and regulations in the field of accounting in order to provide consistent financial information to the users of the financial statements…
Thus, it is less likely that chairman would not be influenced by the activities of lobbying in the field of setting accounting standards. The lobbying activities in the field of accounting standard setting is directed at influencing the FASB in providing more flexibility to the firm in their accounting practice with no attention towards the safeguarding the long term interests of the firm as well as the investors (Andre, Cazavan-Jeny, Dick, Richard and Walton, 2009, p.24). The intentions of the lobbies are guided by narrow interests of enhancing short term economic value of the firm by allowing relaxations in the accounting standards which are contradictory to the rules and regulations prescribed by FASB. This piece of work is aimed at analyzing the impacts of lobbying on standard setting by FASB in accounting practices of the firms. Issues involved: Lobbying on standard setting in accounting The process of standard setting in accounting is guided by the rules and regulation of Financial Accounting Standards Board (FASB). ...
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