An important historical reason for the FASB reversing its positions when political pressures occur is:

An important 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. Companies withdraw financial support for the FASB.

d. The SEC did not support the FASB position.

d. The SEC did not support the FASB position.

Explanation:

SEC is an acronym for Security Exchange Commission, and it is a governmental agency whose primary function is to set accounting standards in the country legally, in the process of carrying out this function, SEC in turn delegated this function to FASB an acronym of Financial Accounting Standards Board, a private sector body.

Hence, due to issue of accounting standards, notably on the aspect of its complexity, timelines and transparency, the SEC did not support FASB methods in setting Accounting principles. Therefore, in order to refined and speed up the accounting standard settings, the FASB had to change or reverse its decision on Accounting standards.

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