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Confusion over Accounting Conservatism: A Critical Review

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  • Yuying Xie

Abstract

type="main"> Accounting conservatism is a long-standing and the most influential convention in preparing financial statements. Surprisingly then, there is considerable debate regarding conservatism among standard setters and researchers. This paper reviews the recent literature on accounting conservatism and shows that the existing controversy surrounding conservatism stems partly from confusion over definitions and measures of accounting conservatism. This paper aims to address several common misconceptions about accounting conservatism and suggests directions for future research.

Suggested Citation

  • Yuying Xie, 2015. "Confusion over Accounting Conservatism: A Critical Review," Australian Accounting Review, CPA Australia, vol. 25(2), pages 204-216, June.
    • Handle: RePEc:bla:ausact:v:25:y:2015:i:2:p:204-216
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    5. Le, Tuan Bach & Pavelkova, Drahomira & Do, Thi Thanh Nhan & Ngo, Minh Vu, 2017. "Does foreign ownership impact accounting conservatism adoption in Vietnam?," Business and Economic Horizons (BEH), Prague Development Center (PRADEC), vol. 13(3).
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    8. Stewart Jones & Nurul Alam, 2019. "A machine learning analysis of citation impact among selected Pacific Basin journals," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 59(4), pages 2509-2552, December.
    9. Adamu Pantamee Abdurrahman & Shafi Mohamad & Ooi Chee Keong & Syed Ehsanullah, 2020. "Debt Covenants and Accounting Conservatism," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(4), pages 537-545, July.
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