(b) Draft a report suitable for inclusion in a Management Commentary for Jones and Cousin which deals with:

(i) the key risks and relationships of the business (9 marks)

(b) Discuss the view that fair value is a more relevant measure to use in corporate reporting than historical cost.

(12 marks)

(ii) authority; (3 marks)

(ii) vehicles. (3 marks)

(ii) Advise Andrew of the tax implications arising from the disposal of the 7% Government Stock, clearly

identifying the tax year in which any liability will arise and how it will be paid. (3 marks)