Hans Hoogervorst, Chairman of the International Accounting Standards Board (IASB), today delivered a speech entitled The Concept of Prudence: dead or alive? at the Federation of European Accountants (FEE) Conference on Corporate Reporting of the Future in Brussels, Belgium.

Speaking about the removal of the concept of prudence from the IASB’s Conceptual Framework in 2010, Mr Hoogervorst maintained that, despite its removal, the basic tenets of the concept remain intact and visible throughout International Financial Reporting Standards.

Mr Hoogervorst explained that prudence also plays an important role in the development of new Standards, outlining the challenges that the IASB faces in building sufficient levels of caution in developing rules for areas such as Financial Instruments, particularly with regard to impairment.

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