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

question 28

Multiple Choice

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.

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Definitions:

Interstate Commerce Commission

A regulatory agency in the United States established in 1887 to regulate railroad prices and later expanded to oversee other modes of transportation.

Formal Rule Making

A type of rule-making that is used when legislation requires a formal hearing process with a complete transcript; consists of publication of the proposed rule in the Federal Register, a public hearing, publication of formal findings, and publication of the final rule if adopted.

Ambiguous

Being open to more than one interpretation, meaning, or outcome, often resulting in uncertainty or confusion.

Administrative Law

A branch of public law that governs the activities of administrative agencies of government.