Question 1 - 750 words (4 marks) According to Chambers (as quoted in Riahi, Belkaoui, 2004, pp. 496-7)

"At any present time, all past prices are simply a matter of history. Only present prices have any bearing on the choice of an action. The price of a good ten years ago has no more relationto this question than the hypothetical price 20 years hence.... no useful inference may be drawn from past prices which has a necessary bearing on present capacity to operate in a market..."

What does Chambers mean by this statement? Critically evaluate whether Continuously Contemporary Accounting (CoCoA - Chambers method of accounting), adequately addresses the problems he alludes to.

In addition to the marks above, 2 marks are allocated for academic writing, and 1 mark is allocated for referencing.

RATIONALE

This assessment task will assess the following learning outcome/s:

be able to critically evaluate attempts to develop and apply a conceptual framework.

be able to critically appraise the objectives of accounting and relate them to the various concepts of accounting discussed in earlier subjects.

be able to analyse the possible usefulness of alternative measurement systems to historical cost.