The Principle of Prudence Approach in the Accounting of Affected by the Economic Crisis’ Entities

Abstract

The principle of prudence is one of the principles adopted by IAS 8. In the current context, we appreciate that the economic impact requires the responsible approach of the prudence principle in order to reflect the economic situation in the accounting of the Romanian entities affected by the crisis. The purpose of this paper is the ex-ante evaluation of the financial situation and the adjustment by econometric modelling under the current conditions. We aim to develop a comparative model based on the stock quotes of the entities, reflecting the applicability of the prudence principle. The results of the study constitute a source of information for the economic agents in their demersal for adjusting the accounting economic situation to the current situation.