DOCENTE

David Mallia

LEZIONE

Conservatism

OBIETTIVI DELLA LEZIONE
In accounting, the convention of conservatism, also known as the concept of prudence, is a method of anticipating possible future losses but not future gains. Thus this concept has the objective to understate rather than overstate net assets and net income, and therefore the financial statements are reflecting what is a more of a ‘safe’ scenario.