Key generic skills : Research, critical thinking and communication

 Key generic skills: Research, critical thinking and communication.Question 1 (12 marks)Refer to the article Pawsey, N., Brown, A. & Chatterjee, B. (2011). ‘The potential adoption of IFRS for U.S. Issuers: A textual analysis of responses to the proposal,’ 23rd Asian Pacific Conference on International Accounting Issues, Beijing, China, 16-19 October on Interact. Let us assume that Financial Accounting Standards Board (FASB) now requires U.S. domestic firms to prepare financial statements following IFRS.a) Explain ‘public interest theory’ in your own words. From the perspective of public interest theory, discuss the rationale for the introduction of such reporting requirements. (4 marks)b)Explain ‘private interest theory’ in your own words. Contrast your answer to part b) with how private interest theory would explain the introduction of such reporting requirements. (4 marks)c)Explain ‘capture theory’ in your own words. Predict, from the perspective of capture theory, who may ultimately benefit from the introduction of such regulation. (4 marks)In conjunction with the article by Pawsey et al.,may refer to other academic/professional journalarticles on this topic in your discussion.Question 2 (8 marks)Search academic database(s) and find two academic papers that used agency theory. Explain ‘agency theory’ and how these academic papers used this theory. Critique the use of this theory in the contexts in which these papers used this theory.