Can anyone please tell me what's the advantages and disadvantages of Prudence concept?
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Accounting concept. watch
- Thread Starter
- 05-11-2017 13:22
- 05-11-2017 16:59
Have a read at part three here as a start:
- 05-11-2017 17:02
- 05-11-2017 17:05
I cannot remember re SSAP2 but a lot of the original SSAP documents also had commentary, if you can find an original SSAP2 it may have some narrative worth reading. Afraid I no longer have my paper copies and cannot find online to check, but if you have access to an online university resource it could be worth reading.
In essence you need to consider how non observance may overstate profits and assets but too strong a reliance can lead to understatement.