24 August 2015
The concept of prudence makes a comeback in accounting standards
At one time the concept of prudence would be found engraved on the hearts of all accountants and auditors. Prudence was at the centre of accounting practice and the preparation of financial statements. Not only was it regarded as good professional practice, accountants were required to adopt it by both regulation and legislation.
The International Accounting Standards Board (IASB) however, has muddled the accounting waters with its rather confused stance on the use of prudence. After...