Question 21 (30 marks) The term 'regulatory framework' refers to the body of rules and regulations that applies to the financial statements of listed companies. This framework includes company law, accounting standards and stock exchange regulations. Discuss this framework with reference to: 0 why regulation is necessary for publicly listed companies (4 marks) 0 the purpose of accounting standards and the role of the Australian Accounting Standards Board (AASB) (8 marks) 0 the nature and importance of the International Accounting Standards Board (IASB) and identify four benefits and four limitations that stem from the standardisation of accounting practice (14 marks) 0 the Australian Securities and Investments Commission (ASIC) and the Australian Securities Exchange (ASX) in their regulatory roles. (4 marks)