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Question: The following questions relate to the apparent divergence in view between the standard setters and the private sector, with respect to the need to shift from historical cost to current value accounting:
(a) In your opinion, why do standard setters move away from traditional historical cost accounting?
(b) Why do think that the business community and the public accounting firms are so strongly opposed to a move away from historical cost accounting?
(c) Measurement principles are fundamental to any accounting system. Why does the Framework lack fully developed measurement concepts?
Financial Statement Analysis and Preparation
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