Please answer me question 2 only

Part B

According to the Australian Accounting Standards (AASB 138 Intangible Assets), companies are required to not capitalised research expenditure instead treating them as expenses consequently present them in the income statement.

Requirement:

1) Building on the three main components of the Positive Accounting Theory, provide your prediction

and discuss which companies are likely to have a preference of capitalising research expenditure

rather than expenses?

2) Discuss the potential investigation or studies for researchers for testing your predictions in the

above question.