Has Australian financial reporting become more conservative over time?

Cheng Lai*, Meiting Lu, Yaowen Shan

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

13 Citations (Scopus)


This study examines whether Australian financial reporting became more conservative over the period of 1993-2009. Unlike the United States and European evidence in Givoly and Hayn (2000) and Grambovas (2006), the Australian evidence is not consistent with the notion that conservatism has increased over time. The degree of conservatism fluctuates without any obvious trend over the 17-year period, especially for the constant sample of firms appearing throughout the period. We also examine the impact of mandatory International Financial Reporting Standards (IFRS) adoption on accounting conservatism in Australia. Our evidence suggests the adoption of IFRS has led to a decrease in conditional conservatism (i.e. asymmetric timeliness).

Original languageEnglish
Pages (from-to)731-761
Number of pages31
JournalAccounting and Finance
Issue number3
Publication statusPublished - Sep 2013


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