THE APPLICABILITY OF THE PRUDENCE PRINCIPLE TO BANK COMPANIES IN THE VISION OF IAS 37

Abstract

The general accounting principles are presented in section 7 of annex to OMFP 3055/2009 (as amended and supplemented). Thus, the effects of transactions and other events are recognized when the transactions and the events occur and are recorded in the accounts and reported in the financial statements of the periods involved. In this paper we propose to deal with specific aspects regarding the application of the general accounting principles to the banking companies with particular reference to the principle of prudence, which will be combined with the current provisions of IAS 37 and the issues regarding the identification and the management of the banking risks.

Keywords

• words corporations
• IAS 37
• risk
• GAP
• the principle of prudence