Empirical Study about Prudence and Aggressivity in Valuation

Abstract

In order to meet the objective of accounting, to present a true and fair view of the financial position, performance and cash flow of an economic entity, it is necessary to choose appropriate accounting policies. The accounting policies represent the rules regarding the recognition and evaluation of the structures in the balance sheet and the income statement. There is a degree of subjectivism in the evaluation, in the context of the intersection between the accounting and the fiscal objective. The notion of disconnection between accounting and taxation is pretty new. This is the reason for what there are a fear about valuation in the circumstances where taxation does not recognizes it. In this regard, we included in the present paper an advisory study involving professional accountants and presented their point of view in the field of valuation at different times of the financial year. One of the objectives of these study is to clarify underline the importance to choose the accounting policies with no implications of taxes rules. The accountant have to understand that in our days accounting policies must be independent. However, we cannot neglect the truism that it is in human nature that where there is no constraint regarding the provisions of a normative act, they will not apply.

Keywords

• taxes policies
• valuation
• disconnection
• prudence
• accounting policies