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Home > QFINANCE Dictionary > Definition of prudence

Definition of


Treasury Management

principle of not anticipating profits in accounts the principle that revenue and profits are not anticipated but are included in the profit and loss account only when realized in the form either of cash or of other assets, the ultimate cash realization of which can be assessed with reasonable certainty. Provision is made for all known liabilities (expenses and losses) whether the amount of these is known with certainty or is a best estimate in the light of the information available.

Related definitions of "prudence"

prudence - Related Articles
  • Tripping over Prudence—Ideas for a Sensible Fix for Basel II

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    One of the great ironies of the present crisis, given the prevailing consensus that it was too much easy, low-cost credit that caused the US housing bubble, and sent investors off in search of higher returns, is the way the crisis has been exacerbated by undue regulatory prudence. For this, Basel II
    By Samuel Sender, Noel Amenc

  • Basel II

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    to Recovery Managing Operational Risks Using an All-Hazards Approach Revising Basel II—But at What Cost? Securitization: Understanding the Risks and Rewards Tripping over Prudence—Ideas for a Sensible Fix for Basel II Basel II—Its Development and Aims Creating Executive Compensation Understanding

  • Credit Crunch

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    resulting in huge losses for banks globally. The Crash and the Banking Sector—The Road to Recovery Navigating a Liquidity Crisis Effectively The Perfect Storm—Why Did No One See It Coming? The Missing Piece in Risk Management Risk—Perspectives and Common Sense Rules for Survival Tripping over Prudence—Ideas for a Sensible Fix for Basel II Viewpoint: Jagdish Bhagwati Viewpoint: James Montier Viewpoint: Michael J

  • The Responsibilities of Trustees


    and other regulations that govern the activities of the trust; act with integrity, and avoid any personal conflicts of interest or misuse of funds or assets; ensure that the charity is and will remain solvent (duty of prudence); use charitable funds and assets reasonably, and only in furtherance


Definitions of ’prudence’ and meaning of ’prudence’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’prudence’ and other financial terms with our online QFINANCE Financial Dictionary.

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