During a chance meeting in the corridor with Watt L.N. Daub, the senior partner, he tells you that he qualified as a chartered accountant in 1990 and since then has not kept up-to-date with developments in accounting theory. For example, he knows little about the International Accounting Standards Boards (IASBs) Conceptual Framework (CF) and the possible impact that it could have on ac- counting / financial reporting standards. For each of two topics, being a) inventories (including Cost of Goods Sold (COGS)) and b) Property, Plant and Equipment (PPE) (including depreciation),

How the current standard for each topic (inventories (IAS 2) and PPE (IAS 16), as specified above) requires accounting to be done, and thus assess which view, traditional or CF-influenced, predominates today? the impacts of IAS 36 on Impairments; and the impact of the different accounting approaches on the figures to be reported in both the Statement of Financial Position and the Statement of Comprehensive Income.