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Question - In a newspaper article that appeared in the Australian Leisure Management on 18th May 2020 entitled "Creditors vote for liquidation of National Basketball League's Illawarra Hawks"
"Creditors have voted to liquidate the remaining assets of NBL franchise the Illawarra Hawks after the team was put into administration for the second time in five years.
A report from administrator Michael Jones revealed the Hawks were unable to meet outstanding debts of more than $2 million and recommended the company be wound up.
It also revealed staff and players who had been stood down since April were owed about $750,000."
Required - Pursuant to the Conceptual Framework, general purpose financial statements prepared on the assumption that the reporting entity is a going concern. Is it reasonable to use historical cost to prepare the financial statements of Illawarra Hawks? Briefly explain.
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