assignment question 1 10 marks 1000 words read the following quotation from miller a 1553480

Assignment Question 1 (10 Marks, 1000 Words)Read the following quotation from Miller and Reading (1986, p. 64). Ifconstituency support is necessary before particular accounting approachesbecome embodied in accounting standards, does this have implications forthe ‘neutrality’ and ‘representational faithfulness’ (qualitative characteristicsthat exist in various conceptual framework projects around the world) ofreports generated in accordance with accounting standards?HI6025 Accounting Theory and CurrentIssueTRIMESTER 1, 2016INDIVIDUAL ASSIGNMENT“The mere discovery of a problem is not sufficient to assure that the FinancialAccounting Standards Board will undertake its solution … There must be asuitably high likelihood that the Board can resolve the issues in a manner thatwill be acceptable to the constituency—without some prior sense of thelikelihood that the Board members will be able to reach a consensus, it isgenerally not advisable to undertake a formal project”.Assignment Question 2 (10 Marks, 1000 words)As Watts and Zimmerman (1986, p. 7) state, Positive Accounting Theory ‘isconcerned with explaining [accounting] practice. It is designed to explain andpredict which firms will and which firms will not use a particular accountingmethod … but it says nothing as to which method a firm should use’. Do youthink that this represents an ‘abrogation’ of the academics’ duty to serve thecommunity that supports them?General Instructions for both assignment questionsYou should then respond to the statement by arguing a position. Do youagree or disagree, explaining why. You should give consideration to events inrecent years that may have had an influence.