| dc.description.abstract | The purpose of financial statements is to provide information regarding the financial position, company
performance and changes in financial position that are beneficial to a number of parties in decision making.
Therefore, quality financial statement information is free from material misstatement. The impact of
harmonizing financial accounting standards makes the wider spread of the concept of prudence more
widespread. Researchers in this matter used literature studies to see how conservative concepts and
prudence concepts in several countries. The concept of Prudence and the concept of conservatism are two
contradictory things. From the results of the literature study, it was concluded that the concept of prudence
would help financial reporting so as not to provide false optimism to users of information in the event of
high uncertainty. Meanwhile, conservatives must be careful but if losses are recognized immediately. So,
the concept of prudence is more transparent. However, the concept of prudence in developing countries has
not been used differently from developed countries that have used prudence. | en_US |
