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Abstract:
Under the conditions of market economy, due to competition the growing risks, accounting the objective economic environment of increasingly high degree of certainty, so the accounting information user more attention to uncertainties related to the risk of information revealed, thus, the application of the principle of caution become inevitable. The prudence principle is widely used to prevent enterprise packing list, and expand the profit rhetorical assets for relevant parties, and provide more reliable accounting information, be helpful for protecting the interests of shareholders and creditors, improve the competitiveness of enterprises in the market. But because of the principle of caution in use has obvious tendency, subjective judgement and weaknesses. With the expanding the scope of application of artificial regulation fees, manipulation, and increase the profit space. In China's new accounting standards promulgated, prudence principle has been further. This paper studies the principle of caution in China's new accounting standards, and the application of how to correctly apply the principle of caution.

Under market economic conditions, risks as a result of growing competition, the objective of accounting in which the uncertainty of the economic environment is becoming more and so pay more attention to the users of accounting information and uncertainties related to the risk of revealing information, thus, Application of the principle of prudent inevitable. The broad principle of prudent use of the packaging will help to prevent the listing of enterprises,虚夸assets, maximize profits phenomenon occurred, the parties concerned to provide a more true and reliable accounting information is conducive to the protection of creditors and minority shareholders, improve the market competitiveness. However, due to the principle of prudence in the use of an obvious bias, such as subjective weakness. With the expansion of the scope of application, the cost of man-made regulation, control of the space increase profits. In China the promulgation of new accounting standards, the principle of prudence has been further embodiment. The article focuses on the principle of prudence in our application of new accounting standards, and how to correctly use to explore the principle of caution.
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Abstract:

    Under market economic conditions, risks as a result of growing competition, the objective of accounting in which the uncertainty of the economic environment is becoming more and so pay more attention to the users of accounting information and uncertainties related to the risk of revealing information, thus, Application of the principle of prudent inevitable. The broad principle of prudent use of the packaging will help to prevent the listing of enterprises,虚夸assets, maximize profits phenomenon occurred, the parties concerned to provide a more true and reliable accounting information is conducive to the protection of creditors and minority shareholders, improve the market competitiveness. However, due to the principle of prudence in the use of an obvious bias, such as subjective weakness. With the expansion of the scope of application, the cost of man-made regulation, control of the space increase profits. In China the promulgation of new accounting standards, the principle of prudence has been further embodiment. The article focuses on the principle of prudence in our application of new accounting standards, and how to correctly use to explore the principle of caution.