Using Positive Accounting Theory, explain why debt covenants are put in debt contracts 10 marks) Question 2 The AASB’s Conceptual Framework defines

Using Positive Accounting Theory, explain why debt covenants are put in debt contracts

10 marks)

Question 2

The AASB’s Conceptual Framework defines five elements of financial reporting and specify the recognition criteria for these elements. Using normative accounting theories, explain the purposes of the definition and recognition criteria for these elements. 10 marks