The Effect of Conservatism and Precautionary Principles on the Reporting Practices of Economic Entities

Revista Anale, Seria Științe Economice, TImișoara, Issue XVII, pp 829-836, 2011

Posted: 9 Nov 2016 Last revised: 5 Dec 2016

See all articles by Raluca Guse

Raluca Guse

Bucharest Academy of Economic Studies

Adriana Calu

University of Bucharest

Daniela Artemisa St. Calu

Bucharest Academy of Economic Studies

Avram Viorel

Independent

Date Written: 2011

Abstract

Decisions of various stakeholder groups are no longer based exclusively on financial reporting. The global changes and multidimensional pressures (social, environmental, political, cultural, economic, etc.) have led to a stringent need to rethink the reporting processes. These take a variety of forms, ranging from "conventional" financial statements to the relatively recent reporting practices such as CSR reporting and value reporting. The present paper aims to analyze the effect generated by the application of two principles - conservatism (the differential verifiability required for recognition of profits versus losses) and precautionary (action to reduce environmental impact should not be delayed because of scientific uncertainty) - on various reporting practices.

Keywords: Corporate Social Responsibility, Social and Environmental Reporting, Conservatism, Precautionary Principle

Suggested Citation

Guse, Raluca and Calu, Adriana and Calu, Daniela Artemisa St. and Viorel, Avram, The Effect of Conservatism and Precautionary Principles on the Reporting Practices of Economic Entities (2011). Revista Anale, Seria Științe Economice, TImișoara, Issue XVII, pp 829-836, 2011. Available at SSRN: https://ssrn.com/abstract=2866590

Raluca Guse (Contact Author)

Bucharest Academy of Economic Studies ( email )

6, Romana Square, District 1
Bucharest, 010374
Romania

Adriana Calu

University of Bucharest ( email )

14 Academiei St.
Bucharest, Bucuresti 70109
Romania

Daniela Artemisa St. Calu

Bucharest Academy of Economic Studies ( email )

6, Romana Square, District 1
Bucharest, 010374
Romania

Avram Viorel

Independent ( email )

9740 49th Ave NE
Seattle, 98115

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