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2018
- ISIDORE Id: 10670/1.a7b398...
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Conservativism Right (Political science) Neo-conservatism New RightCiter ce document
Lambert Jerman et al., « Manipulating prudence in the sell off of the business premises of Manufrance (1970s-1980s) », Entreprises et histoire, ID : 10670/1.a7b398...
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This article examines how prudence can be manipulated when it is translated into an accounting principle. The purpose of conservatism is to support the sustainable growth of industrial companies by reporting assets at the lower end of the range of reasonable values. Based on an in-depth study of Manufrance, a large French industrial company, we describe and analyze how conservatism could be manipulated and diverted from its original purpose. We particularly demonstrate how under-estimating Manufrance’s real estate assets led to opportunistic short-term profits and, eventually, the collapse of the company.
