The website of the FASB (as at the end of 2008) states:

The FASB is committed to following an open, orderly process for standard setting that precludes placing any particular interest above the interests of the many who rely on financial information. The Board believes that this broad public interest is best served by developing neutral standards that result in accounting for similar transactions and circumstances in a like manner and different transactions and circumstances should be accounted for in a different manner.

Do you agree with this statement? That is, do you believe that the FASB will not favour any particular interests or that accounting standards are ultimately ‘neutral’?

Clearly identify the theoretical basis that you have applied in arriving at your answer.