1. Explain the Senate committee's concern from a capture theory perspective.
2. Adopting a Positive Accounting Theory perspective, consider the following issues:
a) If a new accounting standard impacts on profits, should this impact on the value of the firm, and if so, why?
b) Will the impositon of a particular accounting method have implications for the efficiency of the organisation?
3. Critically analyse and evaluate the arguments for, and against, for each of the case studies.Which arguments do you consider to be more compelling?