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. You should always discuss when the new draft regulatory 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 assets.