behavior are core competence. introduced even without contracting considerations. 2 Conservatism in Ross L. Watts Summary of the This paper is based on This is Part II of the In this paper the Accounting Part 2003 empirical evidence existing literature study of writer concludes II: Evidence and on conservatism, literature(literature study), conservatism in that existing Research its consistency with thus there is no test accounting. This part evidence for Opportunities alternative information included, summarizes the accounting explanations, and September 2003 empirical evidence on conservatism is opportunities for the existence of most consistent with future research. conservatism. Ross L. the contracting and Watts elaborates litigation several measurements explanations. for conservatism, Further the writer draws evidences on concludes there is a alternative reason to believe conservatism that the four explanations and on explanations for non-conservatism conservatism explanations. Further (contracting, this article discusses litigation, tax and some research regulation) are not opportunities. independent. Also conservatism is driven by a concern with overpayment by contracting parties, courts and government and this principle will not
behavior are introduced even without contracting considerations. core competence. 2 Conservatism in Accounting Part II: Evidence and Research Opportunities Ross L. Watts 2003 Summary of the empirical evidence on conservatism, its consistency with alternative explanations, and opportunities for future research. This paper is based on existing literature(literature study), thus there is no test information included, September 2003 This is Part II of the literature study of conservatism in accounting. This part summarizes the empirical evidence on the existence of conservatism. Ross L. Watts elaborates several measurements for conservatism, draws evidences on alternative conservatism explanations and on non-conservatism explanations. Further this article discusses some research opportunities. In this paper the writer concludes that existing evidence for accounting conservatism is most consistent with the contracting and litigation explanations. Further the writer concludes there is a reason to believe that the four explanations for conservatism (contracting, litigation, tax and regulation) are not independent. Also conservatism is driven by a concern with overpayment by contracting parties, courts and government and this principle will not