What was the main recommendation of SAP 1 Current Cost Accounting,issued in Australia in November 1983?
A)That companies disclosed information on profit from continuing operations on a current cost basis for the current financial year
B)That companies are not required to report historical cost information if they have disclosed current cost information
C)That companies presented supplementary current cost accounting statements in addition to historical cost financial statements
D)That companies used current cost for the main financial statements and historical cost as supplementary data

Question

Quizplus · Accepted Answer

The main recommendation of SAP 1 Current Cost Accounting was that companies presented supplementary current cost accounting statements in addition to historical cost financial statements. Therefore, option C is the correct answer. Option A is incorrect because while the recommendation was related to current cost accounting, it did not require disclosure of profit from continuing operations on a current cost basis. Option B is incorrect because the recommendation did not suggest eliminating historical cost information. Option D is also incorrect because the recommendation was to present supplementary current cost accounting statements, not to use current cost for the main financial statements.

What Was the Main Recommendation of SAP 1 Current Cost