Question 1 - 4 marks (750 words)
Identify and describe three (3) alternatives to Historical Cost Accounting (HCA). In your description, outline the underlying assumptions of each alternative and provide examples of how each method could be applied in practice. Critically evaluate whether any of these alternatives represent a viable alternative to historical cost accounting.
Question 2 - 4 marks (750 words)
Identify the main users of accounting referred to within the AASB/IASB conceptual framework. Does the identification of particular users within the conceptual framework have implications for the future of accounting measurement? In your response you will need to consider the implications of the identification of particular users on the use of fair values and historical cost accounting.
Question 3 - 4 marks (750 words)
a) Outline the advantages for accounting that could result from the development of conceptual frameworks.
b) Refer to the following journal article:
Hines, R (1989), "Financial accounting knowledge, conceptual framework projects and the social construction of the Accounting profession".Accounting, Auditing and Accountability Journal,2(2), pp. 72-92.
Who does Hines believe has the most to gain from the development of conceptual frameworks? Compare and contrast the views of Hines with the advantages you identified in part a)
Academic Writing and Referencing - 3 marks
Content assessed: Conceptual framework, measurement and normative theories.
Key generic skills: Research, critical thinking and written communication.