Why do German companies willingly take a conservative position in calculating income?

Question

Quizplus · Accepted Answer

German companies take a conservative position in calculating income for all the reasons listed in options A, B, and C. By minimizing tax, they can keep more money to reinvest or distribute to shareholders. By avoiding showing higher profits, they may avoid pressure from employees to raise wages or stakeholders to increase dividends. By reporting stable income over time, they can maintain investor confidence and possibly attract more investors looking for reliable returns.

Why Do German Companies Willingly Take a Conservative Position in Calculating