This study investigates how the degree of accounting conservatism in the financial statements of European companies evolves over time during period 1996-2005. This study concludes that the financial statement information of European companies shows a certain degree of balance sheet conservatism and earnings conservatism during period 1991-2005; this degree of balance sheet conservatism and earnings conservatism evolves over time. The research findings do not indicate that the introduction of IFRS has reduced the differences in the degree of balance sheet conservatism and earnings conservatism between European companies reporting according to IFRS. Finally, the research findings indicate that IAS/IFRS based accounting standards have their own characteristics; this cause that the degree of accounting conservatism in financial statements differ importantly per accounting regulation.

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Erasmus University Rotterdam
hdl.handle.net/1765/15570
Erasmus School of Economics

Brouwer, R. (2009). Accounting conservatism in Europe. Erasmus University Rotterdam. Retrieved from http://hdl.handle.net/1765/15570