On the principle of prudence in the use of accounting论会计使用中的谨慎性原则

Ontheprincipleofprudenceintheuseofaccounting[Abstract]WiththeincreasingdevelopmentofChina'smarketeconomy,China'saccountingsystemhasundergoneprofoundchanges.Infiltrationinastepbystepintheaccountingprincipleofprudenceisinordertoreducebusinessriskandprotecttheinterestsofcreditors.Inthispaper,theperspectiveofaccountingstructure,detaileddiscussionofouraccountingsystemwithprudentaccountingprinciplesthenecessityandpossibility,aswellastheprincipleofprudenceintheuseofmodernaccounting;inthesametimeusingtheprincipleofprudenceshouldguardagainstover-cautiousapproach.

[Keywords]Theprincipleoftheneedforprudentuseofover-cautious

Theprincipleofprudenceisanenterpriseinthefaceofuncertaintiesofthesituation,accountingpersonnelshouldmaintainthenecessarycaution,tobesureallpossiblelosses,butisexpectedtoavoidanypossiblebenefits,thatis,withoutaffectingthereasonablenessofthesituation,domaychooseanon-inflatedprofitsandexaggeratedinterestinaccountingpracticestoenableenterprisestomorerobustbusinessdecision-makingbehavior.

First,theprincipleofprudenceintheaccountingofthenecessityof

1.Prudenceprincipleofthegenerationanduseisbasedonthefundamentaluncertainty.Here,theuncertainty,inadditiontoeconomicactivityoffirmshastheinherentuncertaintyandrisks,butalsoincludingtheuncertaintyontheaccounting.Inaccounting,theywillinevitablyhavetomakeextensiveuseofaccountingestimates,thereasonablenessoftheseestimatesandfutureexpectationsbasedontheassumptionthatneedstobedone.Andprudentprinciple,itistodealwiththeseuncertaintiesasaconstraint.

2.Inordertooffsetthebusinessexecutivesandinvestorsover-optimistic,cautioustendencyisnecessary.Ingeneral,accounting,accountinginformationcanbepassedtothereportthantheothercanbemuchmoreuserinformation.Consequently,theaccountingpersonnelshouldattempttobalancetheriskofsuchinformationandinwhich,andtherisksthatmayoccurtomaketheappropriatevaluationtoprovideinformationtoenableuserstoamorecomprehensivereportisexpectedtoenterpriserisktoreducetheblindoptimism.

3.Fortheenterprises,overvaluedassets,rightsandprofitsthanunderestimatethemmoredangerous.Becauseitmayleadtocorporateassetsarenotrealandimaginarysurplusreallosses,sothatenterprisesmakeamistake,ratherthansoundbusinessdecisions,whichmayleadtobusinessaftertheloss,cashflowdifficulties,reducethescaleofproduction,orevenbankruptcy.Fromthispointofview,theessenceoftheprincipleofprudentcapitalmaintenance,thatisonlythecostofcapitaltobemaintainedorbemadeuplater,inordertoconfirmincome.Therefore,whenaccountingshouldfollowtheprecautionaryprinciplewillbepossiblelossesandexpenses,pre-recordedestimates,pendingchargesorlossoccurs,becausetheyhaveaheadofexpectedcostofdoingbusinesswillnotresultinalowfluctuatedMess.Therefore,theprudenceprincipleinimprovingthesurvivalofenterprises,competitivenesshasanimportantpracticalsignificance.

Second,theprincipleofprudenceintheuseofaccountingin

Prudenceprinciplehasbeenappliedtoourmodernaccounting,themostimportantinthefollowingareas:

1.Inaccountingmeasurement,theprincipleofprudentuseofverybroad,makingaccountingestimatesoneofthefactorstoconsiderwhenisthecautiousnature.Forexample,manyend-denominatedassetsusedbythelowerofcostandnetrealizablevaluemethod(lowerofcostormarketmethod),thatis,theprincipleofprudenceintheaccountingpractice,themosttypicalmanifestationisalsothebasisforitsapplicationismainlytosatisfytheprudencePrinciples.Inordertoinventory,forexample,ifthenetrealizablevalueofinventorycostsdownbelowthevalueofendinginventoryatthistimeshouldbethenetrealizablevalue,takingintoaccountthelossondeclineincurrentcosts,thatis,themarketdeclinemayresultinthelossofpre-chargedissueOntheonehandtoavoidoverestimationofassets,ontheotherhandconfirmedthatmeasurementofthepossiblecostsorloss.Conversely,ifmarketpricesrise,companiesmaygetextrabenefits,butthistimeatalowercostinventoryvaluationbaseduponthemostlikelytoachievetherevenueorprofitisnotrecognized.Canbeseen,regardlessofmarketpricemovements,thismethodmeetstherequirementsoftheprincipleofprudence.

2.Accelerateddepreciationmethodisanotherembodimentoftheprudentprincipleofmeasurementmethods.Ingeneral,therateofdepreciationofmanyenterprisesinChinaisstillalowlevel,cannotmeetenterprisetechnologyupdates,thedevelopmentofproductionrequirements.Tothisend,thenewaccountingsystemintheemphasisonstraight-linemethod,whileprovisionfordepreciationoffixedassets,allowingbusinessestouseaccelerateddepreciationmethod.Onemainreasons:First,manyoffixedassetsduringtheinitialperiod,highefficiency,largecapacity,earlyrevenuelarge,inordertoachievetheappropriateratioofrevenueandcost,theyshouldlettheseassetshavethegreatesteconomicutilityoftheearlymulti-metertomentiondepreciation;second,inadditiontothephysicalwearandtear,butalsoconsidertheintangiblelosses,accelerateddepreciationtoreducethephase-outaheadoftheoldtechnology,thelossgeneratedwhenscrapped;andthird,becauseofaccelerateddepreciationtoreducetheburdenofincometaxinpreviousyears,equivalenttothestatetoprovideenterpriseswithinterest-freeloanindisguiseisconducivetotherenovationofmachineryandequipment;Fourth,theuseoffixedcosts,includingdepreciation,maintenancecostsandrepaircosts,becauseofamaintenancefeewillbeusedasfixedassets,theincreaseofthenumberofyears,intheaccelerateddepreciationmethod,annualdepreciationandmaintenancecosts,thesumofastablemethodthantheuseoftheaveragenumberofyears.Thus,allowingsomeindustries,somecompaniesbasedontheactualsituation,youcandouble-decliningbalancemethodandthetotalnumberofyearsselectedalegalmethodofaccelerateddepreciation,whichtosomeextent,reflectstheprincipleofprudence,infactfixedinadvancetoconfirmthedisposalofassetsthatmayoccurwhenlosses.

3.Intheaccountingreports,accountingpersonnelnotonlythenormalbusinessactivitiesofenterprisestodisclosure,butalsotofullyrevealtheexistenceofenterprisesinproductionandmanagementofrisk.Forthoseintheaccountingrecognitionandmeasurementofriskisnotreflected,accordingtotheprincipleofprudenceshouldbeappropriatedisclosureintheaccountingreport.Themosttypicalapplicationisthedisclosureofcontingentliabilities.Liabilitiessubjecttothefinaloutcomeisamatterofwhethertheremaybesomekindofdebt,becauseitisapotentialobligation,oranotverylikelytoleadtooutflowofeconomicbenefitstherealityofcorporateobligation,andthereforecannotberecognizedasliabilities.Forenterprises,theresultsofcontingentliabilitiesuncertainty,istheexistenceoftheriskoccurring,andtogivecarefulconsiderationtonature,shouldbedisclosedintheaccountingreports.Onthecontrary,ortheassetsshouldnotnormallybedisclosed,thisisatypicalmanifestationoftheprincipleofprudence.Repostedelsewhereinthepaperforfreedownloadhttp://

Third,theaccountingworkisnecessarytotheproperuseoftheprincipleofprudencetopreventtheover-cautious

Theprincipleofprudenceasageneralrequirement,ismoreabstract,andwithacertaindegreeofambiguity.Therefore,theprinciplethatitisindeedpossiblefortheexistenceofrandomabuseanddistortionofthepotentialhazards.Forexample,sometimestheprincipleofprudencemightbeconstruedas'rathermorethanthelossofdollarscannotbeexpectedtoreturn',leadingtoincomeshouldberecordedintheaccountsarerecordedaccordingtotherequiredstandardsshouldbeprovisionforthecostofdeliberatelyexpandedthescopeandstandardsofprovisionforandsoon.Inthisregard,forexcessivecautionshouldbelimited.

1.Fullyrecognizetheprincipleofprudenceistoensurethequalityofaccountinginformationimportantprinciple.Asanaccountant,firstofallshouldbethinkingemphasizetheprudenceprinciple,acorrectunderstandinganduseoftheprincipleofprudence.Atthesametime,businessleadersshouldpayattentiontothecautiousnatureofthetrainingofaccountingpersonnel,itisnecessarytomakecarefulcultivationandwork,butalsonotoverlycautious.

2.Toimprovethequalityofaccountingpersonnel'sbusinessandprofessionaljudgment.Anyaccountingprinciples,accountingmethodsintheaccountingaffairsoftheimplementationanduseareinseparablefromthemainbodyofaccounting-accountingstaff.Anenterpriseshoulddoagoodjobofinternalmanagementandimprovetheoverallqualityofaccountingpersonnel,itisnotonlyawealthofprofessionalknowledge,butalsohavegoodprofessionalethics,learnhowtomakegooduseofanappropriatedegreeofprudenceprinciple,accuratelygrasptheessenceoftheprincipleofprudence,intherightmattersofuncertaintyestimatesandjudgments,sothatanobjectiveandimpartial,toavoidthesubjectiveandarbitrary.

3.Tostrengthenauditingandsupervision.Givefullplaytothesupervisoryroleoftheexternalindependentaudit,inordertocorrectlyapplytheprinciplesofprudencetectonic'defensesystem'.Topreventtheenterprisebasedonself-interestorabuseofprudencedonothavetheprincipleofanindependentauditsh