Intermediate Accounting: Reporting...

3rd Edition
James M. Wahlen + 2 others
ISBN: 9781337788281



Intermediate Accounting: Reporting...

3rd Edition
James M. Wahlen + 2 others
ISBN: 9781337788281
Textbook Problem

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.


Write a brief report that describes why financial accounting standards inspire or encourage political action and involvement during the standard-setting process.

To determine

Describe the reasons for the political involvement during the accounting standards setting process.


Financial accounting standards are used by cross sections of organizations for the preparation and presentation of the financial reports to be used by various stakeholders involved.

Since the effect of the accounting standards are wide ranging and have consequence on the economic front, it inspire or encourage political and social involvement during the development of accounting standards. Setting the accounting standards become a social decision as its users play a major role due to the widespread impact.

Various stakeholders and interest groups become vocal while accounting standards are being set due to its economic impact and consequences. They become active and fight, as various parties wish the accounting standards be formulated to protect their interests...

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Additional Business Solutions

Find more solutions based on key concepts

Show solutions add

Explain how an increase in the price level affects the real value of money.

Brief Principles of Macroeconomics (MindTap Course List)

What is motivation?

Foundations of Business (MindTap Course List)

PAYING OFF CREDIT CARDS Simon recently received a credit card with an 18% nominal interest rate. With the card,...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)

What are the two major sources of capital for every type of business?

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)

Explain the concept of vesting.