Which of the following explanations of the prudence concept most closely follows that in the IASB’s Framework
for the Preparation and Presentation of Financial Statements?
A The application of a degree of caution in exercising judgement under conditions of uncertainty
B Revenue and profits are not recognised until realised, and provision is made for all known liabilities
C All legislation and accounting standards have been complied with
D Understatement of assets or gains and overstatement of liabilities or losses.

A