The impression one gains from the internal inconsistency of many of the arguments upon the which justification of conventional accounting, is made to rest is strongly reminiscent of the underlying philosophy of the rulers of Oceania in George Orwells Nineteen Eighty-Four. The distinctive feature of this philosophy is doublethink. Doublethink means the power of holding two contradictory beliefs in ones mind simultaneously, and accepting both of them. Two examples are Valuations are incorporated in balance sheets, but the balance sheet is not a valuation document and Fixed assets should be carried at cost in historical cost, unless such cost is no longer meaningful, [Chambers, R. (1969) Implications of asset valuations and bonus issues in Accounting, Finance and Management, Sydney, Butterworths, p.122]
Discuss the above quotation, particularly as it applies to non-current assets. Do you consider Chambers assertion is justified?
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