Question: Access the Investor Perspectives article written by Steve Cooper, a member of the IASB, in June 2015, entitled A Tale of Prudence? (https://www.ifrs.org/-/media/feature/resources-for/investors/investorperspectives/investor-perspective-jun-2015.pdf). Mr. Cooper

Access the Investor Perspectives article written by Steve Cooper, a member of the IASB, in June 2015, entitled “A Tale of ‘Prudence’?” (https://www.ifrs.org/-/media/feature/resources-for/investors/investorperspectives/investor-perspective-jun-2015.pdf). Mr. Cooper states that two different meanings have been attributed to the term “prudence” when it is used as part of the conceptual framework of financial reporting.

Instructions

a. What two meanings does Steve Cooper describe as having been attributed to the term “prudence”? Explain each briefly.

b. Identify which meaning has been supported by the IASB in issuing a revised conceptual framework in 2018. What major arguments support the IASB’s position?

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a Steve Cooper indicates that the two different meanings of prudence are as follows 1 Prudence means conservative accounting That is prudent accounting choices would favour a conservative bias in maki... View full answer

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