Phusjon Group

Advisory services for business
1 minute reading time (54 words)

Conservatism in Valuation

Conservatism or prudence is a major building block in financial reporting. Earnings and asset values should not be overstated whilst liabilities and expenses should be accounted for in full. This helps guard against potential financial statement manipulation and misrepresentation. Asset valuation, on the other land, is unavoidably judgmental, and conservatism always plays a rol...
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