International Asset And Current Asset

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3.Difference between non-current asset and current asset
Non-current asset can be named as Fixed-asset as well. While current asset is named as non-fixed asset. Non-current asset generally consist of net property, plant and equipment intangible assets such as goodwill and other asset. (Business Analysis and Valuation: Text and Cases By Krishna G. Palepu, Paul M. Healy, Victor Lewis Bernard)For current asset, it is an asset that is likely to be realized in, or is intended for sale or consumption in, entity’s normal operating cycle; it is held primarily for the purposed of being traded; it is expected to be realized within 12 months after the reporting period; it is cash or cash equivalent. Current assets are held with the intention
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5. Prudence concept
Prudence is the normal accounting practice to fully recognize losses as soon as they become apparent but not to recognize revenues until they are certain. In more recent times the prudence concept has become known as the ‘ realizations principle’ in that only gains that have been ‘realised’. Unrealised gains would not be recognized until the value is realized through its sale. (Financial and Accounting for business by Bob Ryan p.108)
Furthermore, it also prevails over the matching concept if the two conflict. For instance, the value of the prudence should be valued for the net realizable value instead of the market price. Where NRV is above cost, the profit likely to arise in the near future is ignored and stock remains in the accounts at the lower figure until the sale occurs. On the other hand, where NRV is below cost, stock must be immediately restated at the lower figure so that full provision is made for the foreseeable future loss.( Introduction to Accounting By Pru Marriott, J R Edwards, Howard J Mellett)
In addition, prudence is also the ethic duty that an accountant should obey and follow, where they should abbreviate, identify and induce the main facts of a business or an organisation. For instance, he/she should not overstate the asset figure by using market value or sales value in the balance sheet. He should provide the accumulated
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