(a) Describe the transition from Normative theory to Positive Accounting Theory. 

(b) Compare and contrast Agency Theory and Positive Accounting Theory (PAT). 

(c) Discuss the major criticisms of Positive Accounting Theory (PAT). Answer here  Question 2 (a), (b) and (c): 2a. 

Question 3 (a) Explain the rationale for a conceptual framework for financial reporting. 

 (b) Discuss the history of development of IASB’s conceptual framework. 

(c) Discuss what qualitative characteristics of information are expected to be in corporate financial statements according to the conceptual framework for financial reporting. Answer here Question 3 (a), (b) and (c): 

Question 4 (a) What is fair value in accounting? Explain the fair value hierarchy according to IFRS 13. 

b) Distinguish between historical cost accounting, current purchasing.

Answer rating: 100% (QA)

Answer A As per normative theory of accounting the analysts would give an accounting approach to be pursued in this scenario based on the incidents that have took place The positive accounting theory ... View the full answer