Ostrożność w rachunkowości – zasada czy cecha jakościowa?
Prudence in accounting – principle or qualitative characteristic?

Summary/Abstract: The purpose of the paper is to examine the evolution of prudence meaning in accounting. Traditionally the essence of prudence is to adopt a cautious approach in making the judgements so that assets and income are not overstated and that liabilities and expenses are not understated. Thus prudence is regarded as a key principle of accounting. It introduces bias into accounting and conflicts with neutrality When the essence of prudence switches and it means that cautious approach in making the judgement is adopted in order to avoid assets, liabilities, income and expenses being overstated as well as understated, prudence becomes compatible with neutrality. In the first part of the paper prudence is tested for being useful under different types of approach to shaping financial reporting. This allows to conclude about the role of prudence in conceptual framework of accounting.

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