Description
QUESTION 1 (1000 WORDS)
In a speech in Paris, Hans Hoogervorst, Chair, IASB, referred to historical cost
accounting as “a very primitive measurement basis that provides information that very quickly becomes outdated”. Do you agree? In your discussion, weigh up the
advantages and disadvantages of historical cost accounting relative to alternative
approaches.
QUESTION 2 (1000 WORDS)
a. What is the difference between primary and secondary stakeholders?
b. Do you consider customers to be a primary stakeholder for the majority of companies? Explain the reasons for your answer.