FASB Damage Control for Small and Medium-Size Firms: A Strategy to Influence Rule-making

Accounting rules promulgated by the Financial Accounting Standards Board (FASB) can have economic consequences for most firms in the United States. The objective of this paper is to provide a cost-effective lobbying strategy for small and medium-size firms. It includes a brief discussion of the potential economic consequences of new accounting rules and of the structure and operating procedures of the FASB. Small and medium-size firms can best direct their lobbying efforts through representational organizations and by written comments on FASB proposals. This paper identifies the appropriate role of representational organizations and provides a guide for the preparation of comments by the firm.