Essay: Political Lobbying

Essay: Political Lobbying

Sample Essay

In December 2008, the outgoing chair of the Securities and Exchange Commission, Christopher Cox made an appeal that the “accounting standards should not be viewed as a fiscal policy tool to stimulate or moderate economic growth, but rather as a means of producing neutral and objective measurements of the financial performance of public companies.” (Reason, 2008) This highlights the debate that is brewing about how much influence political lobbying has on the accounting standard setting process (Dagwell, 2008).

            The term “lobbying” in this case needs to be defined so as to understand the process by which accounting standard setting is aimed to be influenced. MacArthur (1996) conducted studies in this regard and was able to define lobbying as merely the submission of a comment letter which lay down recommendations regarding possible changes in the standard that are required for improvement.

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