Critically examine and discuss the impact of lobbying on standard setting in accounting. Illustrate your discussion / your analy

Finance & Accounting
Pages 8 (2008 words)
Download 0
Impact of lobbying on standard setting in accounting Contents Contents 2 Introduction 3 Theoretical Framework of Political Influence 3 Models of Standards setting 5 Empirical Evidence of the process of Lobbying 6 Criticism of the lobbying process 7 Conclusion 8 References 9 Bibliography 11 Introduction The influence of politics on the process of accounting has been a widely debated topic of discussion.


These standards setting have a very significant role in the determination of the profitability of the different businesses that follow these accounting standards. The meaning of political influence has been interpreted in different places in various forms. However the most appropriate definition of influence is the intervention in the entire process of standard setting with a definite purpose. This kind of intervention is generally carried out by an economic agent (Zeff, 2002, pp. 43-54). The goal of the person is to make the make affect the outcome of the accounting process which would not be in tune with the missions of the accounting standards board’s like FASB or IASB. The main motive behind the entire process is to increase the wealth of the entity or to inflate the results or the financial performance of the business. The influence of political forces is not however limited to lobbying but is extended to other forms of power influence (Ramanna, 2008, pp. 253-281). This essay makes an attempt to analyse the theoretical framework behind the entire situation and in the later half justify the theories in light of the present day example. ...
Download paper
Not exactly what you need?