Question 2 (10 marks - 1,000 words)

Find an exposure draft or proposal for a new accounting standard which has been opened for public comments. These can be found on the websites of most standard-setting organisations, such as the IASB, AASB and FASB. (Hint: These websites can be quite difficult to navigate, so as a first step try typing IASB exposure draft and comment letters/FASB exposure draft and comment letters into Google or other search engine of your choice). Read a sample of the comments from a range of respondents. Select four respondents, for example, from accounting bodies, industry, companies or corporate bodies. If you are having a problem finding suitable comment letters then contact your subject lecturer. Include copies of the comment letters you wish to discuss and complete the following tasks:

a) Describe in your own words the issues that the exposure draft/proposal and comment letters are dealing with.

b) Is there agreement among the various groups? Describe the issues where there is agreement/disagreement and provide examples.

c) Can any of the comment letters be interpreted as being for or against regulation? Justify your answer with appropriate examples.

d) In your opinion, which of the three theories of regulation (e.g., public interest, private interest or capture theory) best explains the comment letters? Justify your answer.

Please note: you need to attach comment letters you selected for your report (no need to attach exposure draft).