Answer ALL question. PART A Accounting is an instrument of human behavior and is constructed and used for the specific purpose of the individuals who are preparing the information. a) Discuss the needs of the accounting standard and the challenges of the standard setting? b) Distinguish between normative and positive accounting theories. c) Discuss TWO (2) accounting regulators in Malaysia. d) Identify the steps of issuance accounting standards.

Part B Question 1 Measurement is the process of determining the monetary amounts for the specifics items to be recognized, carried on statement of financial position. Required: i. Explain the historical, current cost and exit price. ii. Discuss the strengths and weaknesses of each measurement. Question 2 There are several theories which are relevant to understand the regulation of financial reporting (in terms of preparing, auditing and supply of accounting information about an entity). Discuss the agency theory and public interest theory.