The following questions relate to the apparent divergence in view between the standard setters and the private
Question:
The following questions relate to the apparent divergence in view between the standard setters and the private sector, with respect to the need to shift from historical cost to current value accounting:
(a) In your opinion, why do standard setters require measurement methods other than traditional historical cost accounting?
(b) Why do you think that some in the business community and the public accounting firms are so strongly opposed to a move away from historical cost accounting?
(c) Measurement principles are fundamental to any accounting system. Why does the Framework lack fully developed measurement concepts?
AppendixLO1
Step by Step Answer:
Accounting Theory
ISBN: 9780470818152
7th Edition
Authors: Jayne Godfrey, Ann Tarca, Allan Hodgson, Jane Hamilton, Scott Holmes