Problem: Under the accounting framework, a company needs to follow the accounting conventions and asset valuation principles in preparing and publishing its financial declarations. According to Atrill and McLaney (2008), a company's financial position is measured and reported based on the following conventions and asset valuation:
(i) Business entity convention
(ii) Historical cost convention
(iii) Prudence convention
(iv) Going concern convention
(v) Dual aspect convention
Question:
Of the conventions listed (or some other convention), which is the most important to follow? Why?