Is it Conservatism or Prudence?

Audrey M. Siahaan, Danri Toni Siboro, Iskandar Muda, Syafruddin Ginting

2018

Abstract

The purpose of financial statements is to provide information regarding the financial position, company performance and changes in financial position that are beneficial to a number of parties in decision making. Therefore, quality financial statement information is free from material misstatement. The impact of harmonizing financial accounting standards makes the wider spread of the concept of prudence more widespread. Researchers in this matter used literature studies to see how conservative concepts and prudence concepts in several countries. The concept of Prudence and the concept of conservatism are two contradictory things. From the results of the literature study, it was concluded that the concept of prudence would help financial reporting so as not to provide false optimism to users of information in the event of high uncertainty. Meanwhile, conservatives must be careful but if losses are recognized immediately. So, the concept of prudence is more transparent. However, the concept of prudence in developing countries has not been used differently from developed countries that have used prudence.

Paper Citation

in Harvard Style

Siahaan A., Siboro D., Muda I. and Ginting S. (2018). Is it Conservatism or Prudence?.In Proceedings of the 1st Unimed International Conference on Economics Education and Social Science - Volume 1: UNICEES, ISBN 978-989-758-432-9, pages 968-972. DOI: 10.5220/0009499009680972

in Bibtex Style

@conference{unicees18,
author={Audrey M. Siahaan and Danri Toni Siboro and Iskandar Muda and Syafruddin Ginting},
title={Is it Conservatism or Prudence?},
booktitle={Proceedings of the 1st Unimed International Conference on Economics Education and Social Science - Volume 1: UNICEES,},
year={2018},
pages={968-972},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0009499009680972},
isbn={978-989-758-432-9},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 1st Unimed International Conference on Economics Education and Social Science - Volume 1: UNICEES,
TI - Is it Conservatism or Prudence?
SN - 978-989-758-432-9
AU - Siahaan A.
AU - Siboro D.
AU - Muda I.
AU - Ginting S.
PY - 2018
SP - 968
EP - 972
DO - 10.5220/0009499009680972