1. Financial accounting is heavily regulated in Australia and many other countries. Within Australia, there are numerous Corporations Act requirements, and there are many accounting standards and interpretations, with additional standards and interpretations being issued frequently. The ASX also provides extensive regulations for listed entities.

REQUIRED:

It is argued by some researchers that even in the absence of regulation, organisations will have the incentive to provide credible information about their operations and performance to certain parties outside of the organisation. Provide at least four possible reasons for regulation that support this view.

2.

Under the IASB/AASB Conceptual Framework, relevance is one of the fundamental qualitative characteristics of financial information.

REQUIRED:

With examples discuss what are the two aspects of relevance. (1 Mark)

When would assets or liability may not provide relevant information? (1 Mark)