Rahat Jafri
Research Subjects
Research Interests
Rahat Jafri has a total of 2 co-authors. Here are the top co-authors by number of shared publications:
- Anup Srivastava
University of Calgary
1 shared publication Hussein A. Warsame
1 shared publication
Latest Publications
- Open Access
- 1 January 2026
- Published by Elsevier in SSRN Electronic Journal
Seeing Clearly or Bracing for Impact? The Tug-of-War between Neutrality and Conservatism in Financial Reporting
A longstanding debate exists between neutrality and conservatism in financial reporting. This debate has gained momentum following the 2010 Financial Accounting Standards Board (FASB) decision to remove the term conservatism from its Conceptual Framework (FASB, 2010). While neutrality is now promoted as a cornerstone of faithful representation, conservatism remains embedded in numerous accounting standards. We revisit the conceptual and practical tensions between these two principles. We introduce the idea of a spectrum of reporting bias, ranging from aggressive to conservative, with neutrality as the aspirational midpoint. Drawing on the evolution of FASB's framework, historical episodes, and recent standard-setting developments, we examine the economic rationales behind conservatism and assess whether it supports or conflicts with the goal of neutral financial reporting. We identify implications for standard setters and practitioners and outline a research agenda to advance the understanding of this important tenet in financial reporting.
- 1 January 2026
- Published by Elsevier in SSRN Electronic Journal
Open AccessSeeing Clearly or Bracing for Impact? The Tug-of-War between Neutrality and Conservatism in Financial Reporting
A longstanding debate exists between neutrality and conservatism in financial reporting. This debate has gained momentum following the 2010 Financial Accounting Standards Board (FASB) decision to remove the term conservatism from its Conceptual Framework (FASB, 2010). While neutrality is now promoted as a cornerstone of faithful representation, conservatism remains embedded in numerous accounting standards. We revisit the conceptual and practical tensions between these two principles. We introduce the idea of a spectrum of reporting bias, ranging from aggressive to conservative, with neutrality as the aspirational midpoint. Drawing on the evolution of FASB's framework, historical episodes, and recent standard-setting developments, we examine the economic rationales behind conservatism and assess whether it supports or conflicts with the goal of neutral financial reporting. We identify implications for standard setters and practitioners and outline a research agenda to advance the understanding of this important tenet in financial reporting.