Assume that a government regulator makes a decision that all companies with a head office in Australia must separately disclose, within their annual financial report, the amount of expense incurred in relation to the training of employees. The companies must also spend at least 5 per cent of their reported profits on training employees.

You are required to: (20 marks)

Explain the decision made by the regulator in terms of public interest theory.

Explain the decision made by the regulator in terms of the economic interest group theory of regulation