IASB faces battle to reconcile divergent views on ‘prudent’ accounting

I&PE | March 22, 2016

The International Accounting Standards Board (IASB) has received strong support for the reintroduction of the concept of ‘prudence’ into its conceptual framework – but little clear direction on how it should do so.

According to a staff summary of comment letters on the board’s recently issued exposure draft, some three-quarters of respondents commented on plans to bring back an an explicit reference to prudence.

The IASB removed the concept from the 2010 iteration of its framework.

But whatever path the board takes on the issue over the course of its new deliberations, one board member warned it against “playing games” with words.

 

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