The political nature of standard setting refers to the fact that, for example, preparers may lobby the standard setters to promote their own self-interest rather than the decision-making usefulness of general purpose reports.

Question

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The statement is true. The political nature of standard setting can lead to various interest groups lobbying standard setters for their own benefit rather than considering the overall usefulness of financial reporting for decision-making.

The Political Nature of Standard Setting Refers to the Fact