Symmetric Prudence in New Definitions of Conceptual Framework for Financial Reporting

Since the version of the Conceptual Framework for Financial Reporting is revised, the interest in accounting concepts that are fundamental in financial reporting has been growing. The purpose of this article is to investigate the evolutionary logic of prudence in the definitions and recognition criteria of assets and liabilities, the causes and consequences of new changes in the Conceptual Framework of 2018. As a result, it was obtained that different interpretations of probability and asymmetric asset and liability identification caused the new changes. The reconciliation between the intentions of new asset and liabilities definitions and their correct understanding results has been illustrated. A new complication in defining obligation such as “no practical ability to avoid” was found. In conclusion, we constant the new definitions as the positive consequence from a psychological point of view, simplifying individuals judgments, as from a conceptual point of view, leading to the common understanding and improvements of qualitative characteristics of financial information. The direct evidence of conceptual improvement is symmetric prudence as support of financial statements’ fundamental qualitative characteristics – faithful representation

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Year of publication:	[2021]
Authors:	Shkulipa, Lyudmyla
Publisher:	[S.l.] : SSRN

Extent:	1 Online-Ressource (15 p)
Type of publication:	Book / Working Paper
Language:	English
Notes:	In: Shkulipa, L. (2021). Symmetric Prudence in new definitions of Conceptual Framework for Financial Reporting. New Challenges in Accounting and Finance. Vol. 5. P. 35-49 Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments January 5, 2021 erstellt
Other identifiers:	10.2139/ssrn.3789753 [DOI]
Classification:	M40 - Accounting and Auditing. General
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://ebvufind01.dmz1.zbw.eu/10013236858