The primary historical reason for the FASB reversing its positions when political pressures occur is:
A)The cost of gathering data was prohibitive.
B)The difficulties in measurement were too great.
C)They have no authority in such situations.
D)The SEC did not support the FASB position.

Question

Quizplus · Accepted Answer

The SEC has the authority to overrule the FASB, and if they do not support the FASB position, the FASB may reverse its stance to avoid conflict with the SEC. This indicates that political pressure from the SEC or other external forces can influence the FASB's decision-making process.

The Primary Historical Reason for the FASB Reversing Its Positions