The Principle of Prudence and the Constituency of Provisions
The Principle of Prudence and the Constituency of Provisions
Author(s): Saveta Tudorache, Anca Bratu, Mariana GurăuSubject(s): Business Economy / Management, Law on Economics, Socio-Economic Research
Published by: Editura Universităţii din Bucureşti
Keywords: provisions; legal obligation; implied obligation; prior event; uncertain value;
Summary/Abstract: Provisions are constituted for the purpose of complying with the principle of prudence. These are comprised into annual expenses until they are used. Their destination is to cover the expenses that prior or actual events make them possible. Indirectly, the provisions represent the equivalent of probable debts generating loss or expenses.
Journal: Manager
- Issue Year: 2008
- Issue No: 08
- Page Range: 77-84
- Page Count: 8
- Language: English