Historical Cost Accounting Method - IASB Conceptual - Accounting Assessment Answer

Accounting Assessment Answer

Task: 1 Question 1  Deegan (2014, p. 171) cites Chambers (1966) as arguing that historical cost information suffers from problems of relevance in times of rising prices. Explain what is meant by this statement. Evaluate whether any of the alternatives to historical cost provide information which is of greater relevance to users of accounting.

• Paragraph 1: Explain and critically evaluate historical cost accounting by identifying its strength and weakness

• Paragraph 2: Introduce CPPA, CPA and COCOA and Explain & critically evaluate method by identifying their strength and weakness.
• Paragraph 3:Compare and contrast strengths and weakness of both historical and current accounting methods with a focus on their relevance to decision making in rising prices

Briefly reminder the reader of the main ideas/arguments discussed in the body paragraphs and also focused on your final opinion Question 2  Deegan (2014, p. 258) argues that conceptual frameworks have been used as devices to help ensure the ongoing existence of the accounting profession by 'boosting' their public standing. Explain what is meant by this statement. Do you think conceptual frameworks have been developed to 'boost' the public standing of the profession, or do you think they serve another purpose? Justify your position. Question 3  The IASB conceptual framework (2014) does not provide any detailed prescriptions on the issue of measurement. In recent years however, accounting standards have shifted away from the use of historical costs in favor of fair values. Why do you think this shift has been happening? Why do you think that conceptual frameworks are yet to clearly stipulate an alternative to historical costs, such as fair values?