M.A. Thesis:

Conditional conservatism and stability of the components of accruals

Conservatism or caution for financial reporting by managers led to profit or loss is asymmetric behavior. In this study, the relationship between conditional conservatism on earnings persistence and earnings components are examined. Since the theoretical foundations of conservative underwriting department managers report a profit, hence greater focus on sustainability accruals and its components. For this purpose, the relationship between the years 1387 to 1393 for the 124 companies from The Tehran Stock Exchange examined. The results suggest that, first of conservatism on earnings persistence components (cash and accrual) have a negative relationship. furder more conservative reduces the persistence of less reliable accruals more than it reduces the persistence of more reliable accruals.

Keywords: : Conservatism, sustainability of accruals, finantial statement, conditional conservatism