The chairman of the board of directors of the company for which you are chief accountant has told you that he has little use for accounting figures based on historical cost.He believes that...

The chairman of the board of directors of the company for which you are chief accountant has told you that he has little use for accounting figures based on historical cost.He believes that replacement values are of far more significance to the board of directors than “out-of-date costs.” Present some arguments to convince him that accounting data should still be based on historical cost.