Sikadanka, the Chairman and CEO of Defenders Ltd recently confronted the Chief Accountant of the company over the way and manner the financial statements were presented for the 2017 financial year. The following points are summaries of the CEO’s reservations about the financial statements: a.  He argued that the values of the company’s assets be shown at current market values since these values will provide a better view of the company’s value. The Chief Accountant is still insisting that the assets should be stated at original cost.
b. He expressed shock when the financial statements did not show a value for the company’s efficient staff. He argued that the company’s beautiful and handsome sales personnel are valuable assets used to attract customers and therefore insisted that this “power of attraction” should be recognized in the books of accounts and reflected on the face of the financial statement.
c. He was worried when a potential sale of millions of Ghana cedis to a certain buyer from whom purchase orders have been received have not been recognized in the books of accounts as sales.  The Chief Accountant argued that these potential customers have only been sent pro-forma invoices and so are not obliged to pay the company.
d. The CEO recently bought a saloon car for his son out of company funds. The Chief Accountant recorded this on a current account for the CEO. This resulted in an intense argument. The CEO threatened to dismiss the Chief Accountant should he refuse to recognize the purchase of the saloon car as a transaction of the company.
e. The CEO insisted that the value of expired inventory should be maintained in the books of accounts and not written off.
Required:
State which accounting concept should be applied in preparing the financial statements in order to report fairly the business of Defenders Ltd?​