(a) Discuss the different sources of financial reporting regulations. Critically evaluate the arguments in favour of, and, the arguments against the regulation of financial reporting. 15 marks (b) Critically evaluate what qualitative characteristics accounting information should possess, in order to make it useful for decision making? [10 marks] (c) Mancy plc In preparation for the audit of the mancy plc, for the year ended 31 March 2020, the Finance Director has asked you to prepare a report setting out the accounting treatment for the following transaction undertaken during the year. Transaction: On 1 July 2019,Mancy plc commissioned a specialised piece of equipment to be built for 350,000. The equipment was ready for use, on time, on 1 April 2020. A loan was taken out on 1 July 2019 for the full 350,000, as payment for the equipment was due on that date. The interest rate on the loan is 7% pa and interest is paid monthly. The loan is repayable after two years.

You are required to present an explanation of the accounting treatment to be applied in the financial statements for the year ended 31 March 2020 and the reasons why that is the appropriate treatment (with reference to the requirements of the relevant IFRS, and where possible, please show relevant calculations).