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Explain why accountants might prefer to measure property, plant and equipment using a cost model rather than measuring assets on the basis of fair value.

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Explain why accountants might prefer to measure property, plant and equipment using a cost model rather than measuring assets on the basis of fair value. (7 marks) If a company declares a final dividend to shareholders, under what conditions would such a dividend declaration create a liability that would be required to be disclosed in the statement of financial position. Show Journal entries. (11marks)

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