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

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.