'The central economic reason for the origins of government intervention in the operations of various markets in the "public interest" is that of market failure.' J.Godfrey,et el,'Accounting Theory',7^th Ed.p.57.
Briefly outline the public-interest theory of regulation of financial reporting including the assumptions on which it is based and discuss the circumstances when market failure is most likely to occur.

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The Answer of 'The central economic reason for the origins of government intervention in the operations of various markets in the "public interest" is that of market failure.' J.Godfrey,et el,'Accounting Theory',7^th Ed.p.57. Briefly outline the public-interest theory of regulation of financial reporting including the assumptions on which it is based and discuss the circumstances when market failure is most likely to occur.

'The Central Economic Reason for the Origins of Government Intervention