Question 4 (Baseball PIc) a. Principle of good governance are set out in UK's codes of corporate governance. One of the principles is to have division of responsibilities within the Board. Discuss the need to have such principle. Citing past cases, evaluate the implications of not having division of responsibilities within the Board. (15 marks) b. Below are three different situations which are to be analysed independently, in accordance with IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors. i. Previously, Baseball Plc accounted for its non-current assets using the historical cost basis. In the current period, however, Baseball Plc has adopted the revaluation model of IAS 16 to account for its non-current assets. ii. Baseball Plc previously had a policy of calculating depreciation on equipment using the straight-line method @10\%. However, in light of significant losses recognized on recent disposals the management has decided to depreciate equipment by using the reducing balance method @ 20% which shall more accurately reflect the wear and tear of equipment. iii. Baseball Plc has a policy of valuing inventory using the FIFO method. The auditors believe that the value of inventory brought forward in the current period (i.e. last year's closing inventory balance) is inappropriate since the accountant valued inventory using the LIFO method last year. Required Justify with appropriate reasons whether there was a prior period accounting error, change in accounting estimate or change to accounting policy