Some accountants have said that politicalization in the development and acceptance of generally accepted accounting principles (i.e., standard setting) is taking place. Some use the term politicalization in a narrow sense to mean the influence by government agencies, particularly the SEC, on the development of generally accepted accounting principles. Others use it more broadly to mean the compromising that takes place in bodies responsible for developing these principles because of the influence and pressure of interested groups (SEC, American Accounting Association, businesses through their various organizations, Institute of Management Accountants, financial analysts, bankers, lawyers, etc.).

Required:

What arguments can be raised to support the politicalization of accounting standard setting?

What arguments can be raised against the politicalization of accounting standard setting? (CMA adapted).

Discuss the way of setting accounting standards in Saudi and explain whether there could be such Politicalization.