The annual report of a major public limited company included the following statement: Going concern The directors consider that the group and the company have adequate resources to remain in operation for the foreseeable future and have therefore continued to adopt the going concern basis in preparing the financial statements. As with all business forecasts the directors' statement cannot guarantee that the going concern basis will remain appropriate given the inherent uncertainty about future events.

a. Explain why the going concern principle is of importance to a user of an annual report.

b. Explain the meaning of I\ccruals' as an underlying assumption when preparing financial statements, and the qualitative characteristics of 'Comparability' and 'Prudence'.

c. Explain why a 'true and fair view' is of particular importance when presenting financial statements.