What question did this study set out to answer?

To investigate how professional accountants apply cautious prudence when making recognition and disclosure decisions under uncertainty within the framework of IAS 37.

August 20, 2026Australian Accounting ReviewOpen Access

Caution Prudence Under Uncertainty: An Experimental Assessment Within IAS 37

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Authors

AAAlessandra AlliniUniversity of Naples Federico II NDNing DuDePaul University MMMarco MaffeiUniversity of Naples Federico II

Discussion

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Implication

Experimental study reveals consistent prudence for liabilities but standard deviations for contingent assets in accountants, highlighting cognitive biases under uncertainty.

Key Points

To investigate how professional accountants apply cautious prudence when making recognition and disclosure decisions under uncertainty within the framework of IAS 37.
Conducted a 2×4 experimental design assessing recognition and disclosure choices under IAS 37 guidelines.
Sample included N=200 professional accountants recruited from multiple European countries.
Accountants demonstrated a consistent application of cautious prudence when evaluating contingent liabilities.
Judgments involving high-probability contingent assets systematically deviated from standard provisions, demonstrating that cognitive tendencies impair prudent decision-making under uncertainty.

Cite This Study

Allini et al. (2026) studied this question.

synapsesocial.com/papers/6a86b5da8a91293e6a1cd58f https://doi.org/10.1111/auar.70031

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August 20, 2026Australian Accounting ReviewOpen Access

Caution Prudence Under Uncertainty: An Experimental Assessment Within IAS 37

View Full Paper

Ask AI

Bookmark

Authors

AAAlessandra AlliniUniversity of Naples Federico II NDNing DuDePaul University MMMarco MaffeiUniversity of Naples Federico II

Discussion

Member takes

Implication

Experimental study reveals consistent prudence for liabilities but standard deviations for contingent assets in accountants, highlighting cognitive biases under uncertainty.

Key Points

To investigate how professional accountants apply cautious prudence when making recognition and disclosure decisions under uncertainty within the framework of IAS 37.
Conducted a 2×4 experimental design assessing recognition and disclosure choices under IAS 37 guidelines.
Sample included N=200 professional accountants recruited from multiple European countries.
Accountants demonstrated a consistent application of cautious prudence when evaluating contingent liabilities.
Judgments involving high-probability contingent assets systematically deviated from standard provisions, demonstrating that cognitive tendencies impair prudent decision-making under uncertainty.

Cite This Study

Allini et al. (2026) studied this question.

synapsesocial.com/papers/6a86b5da8a91293e6a1cd58f https://doi.org/10.1111/auar.70031

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