Accounting Theory and practice. Have attached the question and marking guide for reference
T1_2021 3101AFE Accounting Theory Workshop 2 Deegan Topics 2 and 3: Regulation of financial accounting ___________________________________________________________________________ PART A: General Questions QUESTION 1: What expectations do accounting standard-setters have about the accounting knowledge of financial statement readers? QUESTION 2: Pursuant to capture theory, how, by whom and why would a regulator be captured? QUESTION 3: It is argued by some researchers that even in the absence of information organisations have an incentive to provide credible information about their operations and performance to certain parties outside the organisation, otherwise the costs of the organisations’ operations would rise. What is the basis of this belief? QUESTION 4: What assumptions are made about the motivations of the regulators in: (a) the public interest theory of regulation (b) the capture theory of regulation (c) the economic interest theory of regulation? PART B: ANALYSIS QUESTIONS QUESTION 5 Refer to the article below and answer the following questions. a) Which of the three theories of regulation discussed in this week’s content is the most appropriate to explain the motivation behind the introduction of the new electoral laws? b) Briefly summarise what aspects of this theory are most relevant to this article. c) Indicate what evidence from the article you can find to support this theoretical perspective. Word limit: Between 200 and 500 words. This word limit applies to this question as a whole and not to the individual components of the question. Qld election 2020: LNP slams Labor for ‘rigging' poll after last-minute law changes The Courier Mail, June 19, 2020 https://www.couriermail.com.au/news/queensland/queensland-government/qld-election-2020-lnp-slams-labor-for-rigging-poll-after-lastminute-law-changes/news-story/4057559131e9f37b14d73c3465b10cff VOTERS could be greeted with a sea of Labor-affiliated bunting at booths while the LNP are restricted to six signs under new electoral laws that “rig” the October election, the Opposition says. Opposition Leader Deb Frecklington has blasted the changes that were passed last night and will influence her upcoming election fight against Premier Annastacia Palaszczuk. It’s understood the laws – which included 100 pages of more than 200 amendments to what was previously announced – were only presented to the Opposition late Tuesday ahead of their introduction to parliament on Wednesday and the vote last night. The last-minutes changes angered the Opposition, who argued broadscale and lasting changes to the electoral system were being brought in without proper scrutiny. The amendments relaxed proposed restrictions on election bunting after complaints the voices of independents and smaller parties would be quelled. Candidates and political parties will now be able to display six signs at designated areas at polling booths. However, “third parties”, which include unions, may display two signs at designated areas at pre-poll offices, and four signs at designated areas of polling booth on polling day. Meanwhile, electoral expenditure spending caps will cap party spending at $92,000 for every endorsed candidate – or a maximum of about $8.55 million if they run in every electorate. Unions can only spend $87,000 per electorate and no more than $1 million statewide. Ms Frecklington said Labor was “trying to rig the electoral system”. “These electoral changes mean that when voters go to a polling booth October 31st they could be met with 100 corflutes from Labor and the unions, but only six from the LNP,” she said. “These changes mean that Labor and the unions could spend $2.3 million on a single seat but the LNP could only spend $150,000. “Labor are blatantly rorting the electoral system.” She said the unfair changes followed a scrapping of Queensland’s old ‘Just Vote One’ system with no public consultation and the banning of property developer donations because it benefited Labor. Katter’s Australia Party have also complained the changes tip the scales for Labor. Premier Annastacia Palaszczuk said her Government wanted people to be able to vote "free from harassment". "That is why the Bill makes some changes to the requirements for signage and limits the signage that can be displayed at pre-poll and polling locations," she said. 2 T 1 _202 1 1 3101AFE Accounting Theory Workshop 2 Deegan Topics 2 and 3: Regulation of financial accounting ___________________________________________________________________________ PART A: General Questions QUESTION 1: What expectations do accounting standard - setters have about the accounting knowledge of financial statement readers? QUESTION 2: Pursuant to capture theory, how, by whom and why would a regulator be captured? QUESTION 3: It is argued by some researchers that even in the absence of information organisations have an incentive to provide credible information about their operations and performance to certain parties outside the organisation, otherwise the costs of the organisations’ operations would rise. What is the basis of this belief? QUESTION 4: What assumptions are made about the motivations of the regulators in: (a) the public interest theory of regulation (b) the capture theory of regulation (c) the economic interest theory of regulation? PART B: ANALYSIS QUESTION S QUESTION 5 Refer to the article below and answer the following questions. a) Which of the three theories of regulation discussed in this week’s content is the most appropriate to explain the motivation behind the introduction of the new electoral laws? b) Briefly summari se what aspects of this theory are most relevant to this article . c) Indicate what evidence from the article you can find to support this theoretical perspective. Word limit: Between 200 and 500 words. This word limit applies to this question as a whole and not to the individual components of the question. Qld election 2020: LNP slams Labor for ‘rigging' poll after last - minute law changes The Courier Mail, June 19, 2020 T1_2021 1 3101AFE Accounting Theory Workshop 2 Deegan Topics 2 and 3: Regulation of financial accounting ___________________________________________________________________________ PART A: General Questions QUESTION 1: What expectations do accounting standard-setters have about the accounting knowledge of financial statement readers? QUESTION 2: Pursuant to capture theory, how, by whom and why would a regulator be captured? QUESTION 3: It is argued by some researchers that even in the absence of information organisations have an incentive to provide credible information about their operations and performance to certain parties outside the organisation, otherwise the costs of the organisations’ operations would rise. What is the basis of this belief? QUESTION 4: What assumptions are made about the motivations of the regulators in: (a) the public interest theory of regulation (b) the capture theory of regulation (c) the economic interest theory of regulation? PART B: ANALYSIS QUESTIONS QUESTION 5 Refer to the article below and answer the following questions. a) Which of the three theories of regulation discussed in this week’s content is the most appropriate to explain the motivation behind the introduction of the new electoral laws? b) Briefly summarise what aspects of this theory are most relevant to this article. c) Indicate what evidence from the article you can find to support this theoretical perspective. Word limit: Between 200 and 500 words. This word limit applies to this question as a whole and not to the individual components of the question. Qld election 2020: LNP slams Labor for ‘rigging' poll after last-minute law changes The Courier Mail, June 19, 2020