Referring to Examples from the Current Accounting Standards,discuss the Influence

question 21

Essay

Referring to examples from the current accounting standards,discuss the influence of conservatism (prudence)on the recognition of assets.

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Definitions:

Norms

Shared expectations or rules within a society or group about how members should behave.

Predictive Validity

The extent to which a score on a scale or test predicts scores on some criterion measure, often used in the context of psychological testing and assessment.

Appropriate Norms

Standards of behavior that are considered acceptable and proper by a society or group.

Standardization

Establishing norms for comparing the scores of people who will take a test in the future; administering tests using a prescribed procedure.