Question 1 - Two fundamental qualitative characteristics of accounting highlighted within the conceptual framework are 'relevance' (QC6-10) and 'faithful representation' (QC12-16). Which of these two characteristics do you think is more important? Justify your position. Given the nature of accounting standard setting, it is possible for accounting to ever achieve faithful representation? Justify your position.
Question 2 - Briefly describe each of the Normative alternatives to Historical cost. In your response include reference to the weaknesses of historical cost that each alternative attempted to address. Were any of these alternatives successful? In your answer you will need to outline your criteria for success.
Question 3 - Describe the key building blocks of conceptual frameworks. Outline two advantages for accounting that can result from the development of conceptual frameworks. What are the criticisms of conceptual frameworks? Do you agree with these criticisms? Justify your position.