(a) In 1999 in the UK, the ASB published the Statement of Principles. Explain what you consider to be the purpose and status of the Statement.

(b) Chapter 4 of the Statement identifies and defines wh.at the ASB believes to be the elements that make up financial statements. Define any four of the elements and explain how, in your opinion, the identification and definition of the elements of financial statements would enhance financial reporting.

(c) Chapter 5 of the Statement states that matching is not regarded as the driver of the recognition process. Explain what is meant by this and its probable effect in practice.LO7-3