(a) The auditors’ report to the shareholders of a public limited company included the following two paragraphs:

“The accounts have been prepared on a going concern basis and the validity of this depends on the company’s bankers continuing their support by providing adequate overdraft facilities.’

“Because of the materiality of the matters referred to in a previous paragraph we are unable to form an opinion as to whether the accounts give a true and fair view of the state of affairs of the company.’

You are required to explain the following terms:

(i) Going concern basis.

(ii) Materiality.

(b) Some companies provide current cost accounting information in addition to the historical cost financial statements. Explain the purposes of this additional information.