Question 1 The regulatory environment for financial reportingYou are a member of a large accounting firm which is responsible for preparing financial reports, including statements and notes to the accounts, and for advising staff in client firms who are responsible for preparing financial reports. The firm only deals with large Australian companies listed on the Australian Stock Exchange (ASX). One of your key tasks is to summarise the changes and developments in the financial reporting environment in a newsletter published quarterly.Required:Prepare a 2 page newsletter that identifies and summarises developments and changes in the financial reporting environment for the quarter from 1 May to 31 July 2016.Detailed guidelines for completing this task:1. Identification of changes and developmentsThis will involve extensive research on a number of sources over the required period. You will need to identify and consider developments/changes relating to:• Technical issues such as the issue of new accounting standards, exposure drafts or other pronouncements or interpretations.• Regulation and monitoring of financial reporting.• Political influences or other potential developments. 'Political' does not only mean action from politicians – it would include lobbying/actions by other groups to promote their own interests – for example there may be articles about companies, or particular interest groups such as Group of 100, saying that if certain accounting standards are introduced this will disadvantage or have a negative impact.You will need to consider both local (Australian) and international sources and developments.2. Potential sourcesGiven the scope of the potential influences on financial reporting you will need to research a range of sources. Below is a list of sources that may be of interest, note that this list is not exhaustive, students should search for sources outside of these. Students should not rely on any one type of source, but a range of sources from each category, i.e. do not just look at websites, also check journals, newspapers etc. Examples of possible information sources include:(a) Websites such as those of:• Australian Accounting Standards Board• Financial Reporting Council• Australian Securities and Investment Commission• Australian Securities Exchange• International Federation of Accountants• Chartered Accountants Australia and New Zealand• CPA Australia• International Accounting Standards Board• Websites of large accounting firms(b) Professional publications:• In the Black (CPA)• Acuity (CAANZ)