Politics and accounting change Accounting is no longer viewed as purely an objective technique that neutrally portrays the performance of economic entities. Instead, accounting and accounting change are subject to political pressures and processes. Accounting is seen to be influenced by politics in three senses. � The involvement of government (either implicitly or explicitly) in accounting regulation and accounting change. � The involvement of parliament in accounting regulation and accounting change. � Accounting regulation and accounting change being the outcome of the interaction of all parties interested in and affected by accounting. These political pressures arise for two reasons: i because the outcome of accounting practices often having significant economic consequences for the preparers and users of accounting reports. This has been shown, for example by Zeff (1972, 1978) who investigated the standard setting process in several countries including the USA and suggested that the process of developing accounting regulations was a political process within w......

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