Is it wisable to record a profit that is not yet accured?

In recording financial statements,losses must be recognise as soon as they are noticed while profits be can only be recognised when they are certain

that is right

Conservatism May also be known as prudence. Losses should be recognised as soon as the business is aware of their likely event, whilst profits should not be recognised until they actually occur. The net realisable value of stock has fallen below cost yet the owner refuses to adjust cost of goods sold [1]calculations

Accounting -> Accounting Principles: Conservatism Conservatism May also be known as prudence. Losses should be recognised as soon as the business is aware of their likely event, whilst profits should not be recognised until they actually occur. Breach: The net realisable value of stock has fallen below cost yet the owner refuses to adjust cost of goods sold calculations.

In this prudent concept, losses should be recognized; so that precaution can be taken. but profits should not be recognized until they occur. It is called conservatism since this is old concept.

Losses should be take into consideration once is discovered

I feel if the stock market value falls, the prices should not be adjusted, why? because point blank, you bought the product at the price before the fall, so you will lose alot of money that way. so I agree with the breach.

How losses should be recognised as soon as the business is aware of their likely event?

Good