Conservatism

Accountancy

As per the conservatism principle, anticipated gain should not be recorded in the books. But in the image below, this rule is violated ( according to my inference ). Pls clarify

Sibi Srinivasan

CA Final

★ 22K+

13-Nov-21 13:48

614

Answers (4)

Yes, conservatism concept is violated.

Suresh Avinash

CA Final

★ 3K+

13-Nov-21 17:38

Ok. Thank you

Thread Starter

Sibi Srinivasan

CA Final

★ 22K+

13-Nov-21 17:50

Practically, there might be some situations where it may be allowed. Hence, it is being taught theoretically. But yes on a general note, it may be said to violate conservatism

Sahibdeep Singh

CA Inter

★ 14K+

13-Nov-21 17:53

Ok sir

Thread Starter

Sibi Srinivasan

CA Final

★ 22K+

13-Nov-21 18:14