The most political issue in the fasb's most recent deliberations and amendments to gaap on stock options was:
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The most ‘political issue’ in the FASB's most ‘recent deliberations’ and ‘amendments to GAAP’ on stock options was --The ‘negative effects’ on subsequent ‘earnings of amortizing goodwill’ if firms were required to use the ‘purchase method of accounting for the combination’.
Explanation:
- The FASB is a private sector organisation in the United States who have developed their standards or metrics for setting accounting standards.
- These standards were developed to solve the problem of understanding and providing a system and structure to the different levels of metrics of GAAP that were brought in by many standard-setting bodies over a period of time.
- The inconsistency may have come up because of the wrong application of the process of GAAP.
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