Question 1: (10 marks approx 20 minutes) From a critical perspective, can financial statements ever be considered objective or neutral? Explain your answer. Question 2: (10 marks approx 20 minutes) Assume that XYZ Company Ltd decides to undertake an upward revaluation of its non-current assets just prior to year end of the financial year, the effects being that the total assets of the company increases, as does the total shareholders equity. (a) Explain the decision of management to undertake an asset revaluation in terms of the debt hypothesis of Positive Accounting Theory (5 marks). (b) Explain the decision of management to undertake an asset revaluation in terms of the management compensation hypothesis of Positive Accounting Theory (5 marks). Question 3: (10 marks approx 20 minutes) Identify and explain the perceived benefits that flow from the decision that a country will adopt the International Financial Reporting Standards (IFRS). Question 4: (10 marks approx 20 minutes) Compare and contrast the development and evaluation of positive accounting theories with normative accounting theories.