2) .The standard setting proces is highly political. Describe an accounting regulation that would be politically controversial, and the types of political pressures that could be brought to bear in the standard setting process

3) The text describes a theory of regulatory capture.(a) What is regulatory capture?(b) How can standard setting bodies such as the AASB avoid regulatory capture?(c) If a standard setting body is 'captured' by the profession, are there any steps that the government can take to make the body independent? If so, should the government take those steps? Justify your answer.(d) Do you believe that the current international accounting standard setting arrangements, based around the IASB, are at risk of regulatory capture? Why or why not?

5) If the IASB concludes that the economic consequences of a standard it is about to approve will disadvantage a powerful lobby group, what should the IASB do about the situation?6) How do you think accounting standards should be set? Is that the approach currently taken by the IASB?8) What are free riders? How can a system ensure that those who benefit most from an accounting standard requiring certain disclosures also bear the greatest costs of it?12) Each of the three theories of regulation discussed in this chapter has its stregths and limitations in describing accounting standard setting, either past or present. What do you believe are those strengths and weaknesses? Provide an example where you believe each of the theories has applied , or is likely to apply.15) The IASB and FASB began a convergence project in 2002.a. What are the expected benefits of the convergence project?b. What factors make convergence difficult?c. How is the future of the IASB tied to convergence?