Accounting standards are seen to be political because:

Question

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Accounting standards can have social, economic, and political implications. They shape perceptions of organizations by providing a financial picture of a company. They can create wealth transfers between various groups in society by impacting how profits and losses are distributed. And they can have a competitive effect by affecting the way companies function and are able to operate. As a result, accounting standards are often the subject of political debate and negotiation as various groups seek to influence their development and implementation.

Accounting Standards Are Seen to Be Political Because