Despite the fact that IFRS has placed lower emphasis on this accounting principal, accountants tend to favour it, in order to counterbalance management's tendency to be overly optimistic with accounting estimates in:
A)materiality.
B)historical cost.
C)conservatism.
D)reliability.

Question

Quizplus · Accepted Answer

Conservatism principle advocates for accountants to choose methods that are less likely to overstate assets and incomes and understate liabilities and expenses. This principle counters management's tendency to be overly optimistic in financial reporting. While IFRS has placed lower emphasis on conservatism, accountants still tend to apply it in their work.

Despite the Fact That IFRS Has Placed Lower Emphasis on This