IFRS requires entities to present comparative information compared to the previous period for all amounts reported in the current period's financial statements. Comparative information of a narrative and descriptive nature will also be provided if relevant to understanding the financial statements for the current period (Ec.europa.eu). There are pros and cons regarding prudence in accounting standards, one thing is for sure that financial information should be authentic and reliable. One thing is certain: there are many examples of prudence in existing IFRS, and these examples are widely accepted treatments. We can look at the following examples which you should always discuss when the new draft framework is being shaped. The discussion and definition should be reconsidered as arguably the main role of prudence in standard setting lies in robust recognition criteria for assets and liabilities, where its application is transparent (Martin). Additionally, another factor to consider is that maintaining historical cost for many items will indicate an appropriate degree of prudence in recognizing profit and asset values. These accounting standards provide guidance, but their application often involves some degree of judgment, “which allows for a range of outcomes largely due to uncertainty. In exercising this judgment, management should err on the side of caution and prudence” (Martin). The IASB is the body that developed the International Financial Reporting Standards and promotes their use and application. Some of the problems faced by companies are due to the fact that IFRS is the standard way of reporting. Some companies have their own way of doing things that differs from country to country and many countries do