Issue to be investigated: reducing the reporting burden for businesses

On the 15th of November 2018, the Treasurer of the Commonwealth of Australia, Josh Frydenberg announced an important change in the definition of a ‘large’ proprietary company for ASIC reporting requirements (see media release here).

You have recently been appointed as a graduate accountant at a Big Four accounting firm. Due to your knowledge of the Australian accounting environment, you have been asked to write a critical analysis of the media release above. Your analysis will appear in an upcoming digital issue of the Financial Times on the theme of ‘Regulation in the 21st Century’.

Your analysis of this specific case must be guided by two theories commonly used to explain why regulation is introduced, and your perspective on the need for accounting regulation.

Your analysis is required to provide new and useful insights into the issue beyond what is included in the media release.