Reply To: Prudence Principal

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August 10, 2019 at 6:25 am #24783
Mayank Goyal
Keymaster

    RISHABH wrote:


    arya3340 wrote:

    Anyone aware about prudence principal in calculating reserves.

    Sent from my ONEPLUS A6000 using Actuarial Info mobile app


    It is a conservatism principle where companies tend to understate assets & income & overstate future liabilities & expenses which help them to play safe.

    It helps them in carrying out Reserving accordingly in order to reduce their financial risk.

    Sent from my SM-A605G using Actuarial Info mobile app


    Agreed.