Principle of prudence The principle of prudence is a key accounting principle. Potential gains in the accounts should not be shown unless they are realised through asset disposals, sales of finished goods, etc, and potential losses should be registered through provisions for the loss in value of inventories, equity and property investments, etc. Principle of prudence The principle of prudence is a key accounting principle. Potential gains in the accounts should not be shown unless they are realised through asset disposals, sales of finished goods, etc, and potential losses should be registered through provisions for the loss in value of inventories, equity and property investments, etc. See all terms in the dictionary of finance To know more about it, look at what we have already written on this subject :

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Definitions of terms begining with the same letter as "Principle of prudence" :

P/E ratio, PER, Price-to-earnings ratio PBR PDS PE, see P/E ratio PER POW PV PVI Paper Paper bill of exchange Paper promissory note Par value Parent company regime Pari passu covenant Partial commitment Participant Participating preference shares Path of wealth, POW Pay-in-kind securities (PIK securities) Payables Payback period Payback ratio Payment method Payout ratio Pecking order theory Peer comparison method Percentage control Percentage interest Percentage of completion method Perfect market Perfect markets theory of capital structure Permanent financing Perpetual subordinated loans and notes Perpetuals Perpetuity

Pitch Plain vanilla Poison pill Political risk Pooling of interest method Pooling on demand Portable alpha Portfolio insurance Position Positive covenant Pragmatic valuation approach Pre-emption (right of) Pre-emptive action Pre-emptive right Pre-emptive subscription rights Preference share Preferential dividend Preferred habitat theory Preferred securities Preferred share Premium Prepaid expenses Prepaid income Present Value Index, PVI Present value Price adjustment Price-To-Book ratio, PBR Price-to-earnings ratio Principal Principle of prudence Priority dividend shares (non-voting) (PDS) Private negotiation Private placement Privileged share Pro forma, pro forma statements

Process-oriented production Product life cycle Production Production models Profit Profit and loss account/statement, P&L Profit before tax and non recurrent items Profit before tax and non recurring items Profit generating capacity Profit on ordinary activities Profitability Program trading Project financing Projected benefit obligation, PBO Promissory note Proportional rate Proportionate consolidation Prospectus Provision Provision for employee benefits and pensions Præcipium Public offer Public offering Public-to-Private, P to P Purchase method Purchase warrant Purchases Put on the seller Put option Put provision Put warrant Put-call parity Putable instrument