EIGHT a) Accounting for Financial Instruments has proven to be one of the most difficult areas for the IASB to provide clear guidance, because the definition of financial instrument captures a wide range of assets and liabilities. As such, preparers, auditors and users of financial statements find the requirements for reporting on financial instruments quite complex, subjective and controversial. Given the controversy, stakeholders have called on standard setters to develop new standards for reporting financial instruments that are principle- based, clear and straightforward. Stakeholders emphasised that a standard in this area should allow users to understand the economic substance of a transaction and permit preparers of financial statements to apply generally accepted accounting principles. Required: Critically evaluate how the measurement of financial instruments under International Financial Reporting Standards (IFRS) can create complexity and confusion for both preparers and users of financial statements. (17 marks) b) In accounting for Government Grants and Disclosure of Government Assistance, IAS 20 outlines two broad approaches for recognition of government grants: a capital approach and an income approach. Required: Outline the arguments in support of each approach. Provide examples for each point you outlined