GuestPrudence
Source: AS 1, Disclosure of Accounting Policies (summary)
Prudence asks the accountant to be careful when making estimates under uncertainty. Provision is made for all known liabilities and losses, even when the amount can only be estimated, but profits are not anticipated before they are realised.
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About Accounting
Accounting principles in short, plain-language summaries: double entry, accrual, going concern and prudence, then Ind AS topics such as inventories, cash flows, events after the reporting period, income taxes, property, plant and equipment, employee benefits, government grants and foreign currency.