Question Four

1. Discuss the fundamental principles of the Code of Ethics for professional Accountants
2. Do you think that such a system of self-regulation is appropriate?

Question Five

The historical cost convention looks backwards but the going concern convention looks forward.

Required:

1. Explain clearly what is meant by;

1. The historical cost convention
2. The going concern convention

2. Does traditional financial accounting, using the historical cost convention, make the going concern convention unnecessary? Explain your answer fully