When the FASB deliberates about an accounting standard,firms whose financial statements would be affected by that standard
A) are legally barred from lobbying the FASB.
B) are not allowed to lobby the FASB if the standard would have a negative impact on their financial statements.
C) are not allowed to lobby the FASB if the standard would have a positive impact on their financial statements.
D) are free to lobby for or against the standard.

Question

Quizplus · Accepted Answer

Firms whose financial statements would be affected by a proposed accounting standard are free to lobby for or against that standard. The FASB provides opportunities for public comment and feedback during the standard-setting process, so it is important for affected firms to provide input and share their perspectives. However, any lobbying efforts should be focused on providing relevant and reliable information to assist the FASB in making well-informed decisions, rather than trying to sway the board's opinion in a particular direction.

When the FASB Deliberates About an Accounting Standard,firms Whose Financial