BUS304: Differentiate a Normative Theory from a Positive Theory Provide an example of each One of the ways to Reduce Agency Costs is to Align an Agent’s Interest with a principal’s Interest: Accounting Theory and Accountability Coursework,MU, Singapore

Differentiate a normative theory from a positive theory. Provide an example of each. One of the ways to reduce agency costs is to align an agent’s interest with a principal’s interest because the agency problem arises due to divergent interests. Do you support this statement? Why?

1b. One of the ways to reduce agency costs is to align an agent’s interest with a principal’s interest because the agency problem arises due to divergent interests. Do you support this statement?

2a.  Explain the impact of different ownership structures (such as family firm, foreign ownership), political philosophy, and economic growth of a company on the disclosure of accounting information.

2b.  In October 2002, the FASB and the International Accounting Standard Board (IASB) announced the issuance of a memorandum of understanding (“Norwalk Agreement”), marking a significant step toward formalizing their commitment to the convergence of U.S. and international accounting standards. In your opinion, what would be the impact of IFRS adoption on U.S. companies?

3a.It has been evidenced that a growing number of Australian organizations offering support to the employee’s mental health issues in responding to the COVID -19 pandemic.   What are the motivations for an Australian organization undertaking mental health-related initiatives for employees as part of Corporate Social Responsibility (CSR) initiatives?

3b. Many organizations in Australia have formed an advisory committee for COVID-19 management as COVID-19 becomes an integral part of the corporate governance system” do you agree?  Critically evaluate this statement.

4a. The companies in Australia could lose $ billions in revenue between now and the next couple of years according to new modelling by analysts. Therefore, many companies are practising aggressive earnings management to control the situation. Do you think is it the right approach by the Australian companies towards earnings management? Explain your answer.

4b. Explain the impact of corporate governance attributes in controlling earnings management.

5a. How can culture, religion and law cause diversity in accounting? How does IFRS try to resolve these problems?

5b. i). What is contracting theory?

ii) Discuss the agency costs of equity and their implications to corporate governance.

6a. Is there a relationship between PAT and earnings management [EM]? To what extent are they related? How can corporate governance play a role here?

6b. Explain why there is opposition to mandatory reporting of social and environmental information in Australia? In your answer discuss whether you believe that the reporting of social and environmental information should be mandatory for Australian companies. Ensure you justify fully your reasons for support or opposition.