Refer to the following article, "Companies warned to brace for toughest reporting season in decades", available at the following link:

https://www.theage.com.au/business/companies/companies-warned-to-brace-for-toughest-reporting-season-in-decades-20200713-p55blp.html

and answer the following questions:

1. Explain the following extract from the article from the viewpoint of the opportunistic perspective of positive accounting theory: "Both the corporate regulator ASIC and corporate governance experts have previously raised concerns about companies using the pandemic to hide bad news or even pump up company profits and executive bonuses through the claiming of stimulus packages such as JobKeeper"

2. Refer to the following extract from the article: "He added that the AICD was also encouraging companies to be very cautious around forwardlooking statements, noting the current environment would make it very challenging to provide accurate guidance". "Directors are going to have to form judgements about the clarity they can give around the future of the business and what assumptions they can make." Explain the role of professional judgement in financial accounting.

3. Refer to the following extracts from the article and discuss and explain them in the context of "creative accounting": "The industry bodies, along with ASIC, are stressing companies to present a clear view of the underlying performance of the business, stripping away any negative or positive impacts brought about by the virus". "This includes stimulus initiatives such as JobKeeper, but also counts more obscure issues, such as cyber security risks brought on by remote working arrangements, changes in trade contracts with suppliers, and interruptions to supply chains". "The warnings also extend to executive bonuses, which are decided by company boards following the finalisation of its full-year accounts, with the industry groups calling on boards to exercise discretion".