Question:

The issue of bonuses being paid to senior executives has come under media scrutiny as a result of the recent banking royal commission. The article "APRA urged to make CEO bonuses more transparent" by Sally Patten was published in the Australian Financial Review on 7/11/2019 (refer to the document titled Patten (2019)). A central theme in this article is that the Australian Prudential Regulatory Authority (APRA) should ensure that non-financial targets are able to measured appropriately if they are to be used to measure bonuses as part of a plan to impose restrictions on how short-term incentives are paid.

Refer to the article, Patten (2019), as well as other references, and answer the following questions:

1. Explain why APRA wants to impose restrictions on how short-term incentives are paid, referring to arguments which support the regulation of accounting as well as the bonus plan hypothesis of positive accounting theory (PAT);

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2. According to the article, "APRA is proposing to force companies to structure short-term incentives so that at least 50 per cent of senior executives' performance targets such as customer satisfaction, safety and compliance". Explain the purpose of this APRA proposal from the perspective of:

a. Agency problems; and

b. The Efficiency perspective of PAT

3. Explain the comment "If APRA wishes to push forward with its pay recommendations, it should at least ensure that non -financial measures are quantifiable, hence less easy to manipulate" from the opportunistic perspective of PAT.

Question #1 [15 Points] Endowment income is a critical part of the annual budget at colleges and universities. The top 10 universities in terms of endowment income are shown below. Amounts are in billions of dollars. University Endowment ($billion) University Endowment ($billion) Columbia 7.2 Princeton 16.4 Harvard 36.6 Stanford 17.2 M.I.T. 10.1 Texas 16.1 Michigan 7.6 Texas A&M 6.7 Northwestern 7.2 Yale 22.9 (a) What is the mean endowment for these 10 universities. Show your work. [4 Points] (b) What is the median endowment? Show your work. [3 Points] (c) What is the mode endowment? [2 Points] (d) Compute the first and third quartiles. Show your work. [6 Points]Consider an economy with two individuals, Ann and Bob and two goods r and J. Ann's initial endowment is (50, 20) and Bob's initial endowment is (20,50). Ann's utility function is uA(I, y) = Vx x y and Bob's utility function is up = x x y. (1) / 2.5 points ] Draw the Edgeworth bor and show the initial endowment, the indifference curves for both individuals associated with their endowments. (2) / 12.5 points ) Is the initial endowment Pareto efficient? Why? Determine the contract curve.ACCOUNTING CODES song that lolow Four towound codes are used to identify the mia across for Input Into a computerined tocounting uplem, The numerical codes for identifying tamactions are contracted by aranging the our account codes in the following order A two-digit number (Table 1) Identifies I'm Fund Code corresponding In the fund that is reaching neverun paying in expenditure, or is of verwise affected by the transaction A four-digit number (Tabin 2) identities the Porsource Code for Fracking solives that have special socounting or reporting requirements A low-digit number (Table ]) Identifies the Function Code corresponding to the rufvry for which a service of material is soquired A four-out Number (Table d) bientiles the Object Code Fat ciamiles moodity of service, and classifies revenue by source Table 1 Table 2 FUND CLASSIFICATION COD RESOURCE CODE General Fund Adult Education Fund State Lotery 1 104 Child Development Fund 3010 Calelena Spool Revenue Child Mutton Delened Muntenange Fund Community Barked Tutoring 10285 Bukaing Fund After School Education Table 3 Table d FUNCTION CODE OBJECT CODE Teacher Salines Certificated Support Salaries 1200 Instructional Aide Salanet 2100 Guidance/ Counseling Serving ssifted Support Splanes Food Services 3700 Honcapitalized Equipment option for Revenues State Lottery Revenue Special Education- Graph Please use the following information for questions 8-15. Using the Accounting Codes, 01-1100-0000-8560 refers to revenue received from: * (1 Point) General Fund Cafeteria Special Revenue State Lottery Special Education - Grants12 Using the Accounting Codes, lunches for field trips funded by the district nutrition program would be recorded as * (1 Point) 01-6010-1000-4300 12-0000-5000-8182 13-5310-3700-4700 14-6285-3110-2200 13 Using the Accounting Codes, bulk food paid for by state Child Nutrition Program funds would be recorded as * (1 Point) 12-0000-3700-4700 12-5310-5000-8590 13-5310-3700-4700 13-3010-5000-4300Components of annual report For each item, indicate the portion of the annual report in which it would be found Financial Management Notes to the statements discussion and Auditor's financial analysis report statements Quarterly Financial Data Balance Sheet