c) The chairman of the board of directors of the firm for which you work has told you that accounting numbers based on historical cost are of little value to him. Fair values, he argues, are considerably more important to the board of directors than "out-of-date costs." Provide some evidence to persuade him that accounting data should continue to be based on historical costs.

c) The chairman of the board of directors of the firm for which you work has told you that accounting numbers based on historical cost are of little value to him. Fair values, he argues, are considerably more important to the board of directors than "out-of-date costs." Provide some evidence to persuade him that accounting data should continue to be based on historical costs.

Contemporary Auditing

11th Edition

ISBN:9781337650380

Author:KNAPP

Publisher:KNAPP

Chapter8: International Cases

Section8.5: Shari’a

Problem 3Q

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