Evaluation Criteria for Conservatism in Financial Reporting in Tehran Stock Exchange Listed Companies

According to Technical Committee of the Audit Organization on theoretical concepts in it reporting، conservatism as a qualitative component to be considered reliable، but has not used the word conservative، but instead uses the term Caution. In this study، we investigated how much the contingent criteria for conservatism in listed companies of Tehran Stock Exchange has been met، using information from financial statements of 80 companies for the period 1381 - 1388 has been studied. Using these models، ball and Shiva Kumar (2005)، it is shown in the conservative criteria provided by the companies in the sample studies، it is not intended to quickly identify the significant economic profits، but losses of companies are delayed. It can indicate the use of aggressive accounting practices in non-bankrupt companies and they were reporting that the situation is not satisfactory. This evidence suggests the existence of agency problems and information asymmetry between managers and shareholders، in Tehran Stock Exchange. The results indicate that the structure of the rules and standards is weak، so as to permit manipulation of accruals.