1. What do you understand by ‘stewardship’ in the historical cost model?
2. Why is profit important to the model?
3. How is matching and the concept of costs attaching used in the determination of profit?
4. Why is net worth not an important concept under the historical cost model?
5. What concept of capital is used in historical cost accounting?
6. Although the historical cost model is a cost-based model, there are some valuation issues.
7. Give the main reasons for the dominance of the historical cost model over others that have been proposed.
8. There are many criticisms of historical cost accounting. Which do you think are the most important? Why?
9. Discuss the proposition that ‘historical costs are less subject to manipulation than other cost or valuation alternatives’.