(Beaver & Ryan, 2000) classify two types of accounting conservatism, namely unconditional accounting conservatism and conditional accounting conservatism. However, many studies do not use this type of classification, so they call it accounting conservatism. Previous research divides accounting conservatism measurement into two categories: accrual-based and market value-based. The following classification is based on the results of previous research:

Some studies that use the accrual basis include (Bauman, 1999). The study examined the role of conservatism in accounting-based valuation, illustrated through a discounted residual income model. The findings of the study are that conservatism inherent in GAAP includes fixed asset life and R&D intensity, which are most economically significant as sources of conservatism. While the LIFO method, deferred tax, and operating lease have no effect, Beaver & Ryan(2000) analyzed the findings of Ahmed, Morton, and Schafer (AMS) in testing the theoretical prediction of Fettham and Ohlson (FO, 1996) that (greater) accounting conservatism implies that operating assets should be (more) positively related both to future abnormal earnings in the FO information dynamic and to unrecognized goodwill in the FO valuation model (Fettham and Ohlson, 1996). The results of Beaver & Ryan(2000) study found that, based on Fettham and Ohlson (FO, 1996), there are four proxies for conservatism: the estimated accounting depreciation rate, the ratio of R&D expenses to sales, the ratio of advertising expenses to sales, and a dummy variable for the LIFO inventory method.

Research was done on all North American Compustat non-financial and non-utility enterprises by (Anagnostopoulou et al., 2021). Proxy accounting conservatism is calculated by averaging the Accrual Discretionary Constant's most recent three-year score. (Chen et al., 2010) investigated the association between accounting conservatism and borrower (business) and lender (bank) nation ownership for a sample of Chinese enterprises. They assess conservatism using a linear connection between accruals and cash flows, following (Ball & Shivakumar, 2006). (Kanagaretnam et al., 2014) investigated the idea that cultural influences affect banks' levels of accounting conservatism and risk-taking. Following (Ball & Shivakumar, 2006) and Nichols et al,2009 in (Kanagaretnam et al., 2014)) these researchers developed a model of accounting conservatism based on aggregate profits, which is the change in net income.

Another study that uses an accrual basis is (Mohammed et al., 2017). These researchers measure accounting conservatism according to (Watts, XXXX), namely the comparison of income before cumulative extraordinary items from a particular year with the market value of equity at the beginning of the year. Research conducted by (Liu & Zhang, 2021) on companies listed in China that are listed as financial companies and companies with governance data available on the China Stock Market and Accounting Research (CSMAR) measures accounting conservatism based on Total Accrual.

Market value was employed in some earlier research to gauge accounting conservatism. One of them is (Beaver & Ryan, 2000), who claim that accounting conservatism is a difference between the book value of assets and their market value that is driven by two factors, namely biased accounting recognition and lagging accounting recognition. Regressing the book-to-market (BTM) ratio is an empirical method for determining the biased and lag components.

(Ball et al., 2013) looked at the relationship between market, political, and institutional factors and conditional conservatism, which is defined as the asymmetric accounting recognition of economic shocks (or "news""). The study goal of (Ball et al., 2013) is to examine the measure's validity within the framework of an accounting income model that includes several forms of information with various delays. The results showed that Basu's incremental coefficient on negative returns reflects the presence of conditional conservatism in accounting earnings.

Furthermore, Lara et al(2014) investigated the information effects of conservatism in accounting in the US using 63,579 firm-year data as the primary sample for the observation period of 1977–2007. According to this study, a rise in conservatism may enhance the corporate information environment and result in a reduction in the information gap between insiders and outsiders. Based on (Khan & Watts, 2009), the researcher utilized conservatism as its primary proxy. In order to provide a firm-level measure of the timeliness of profits for Good News (G_Score) and the incremental timeliness of Bad News with regard to Good News (C_Score), (Khan & Watts, 2009) adapted Basu's (1997) model. The ratio of market value to book equity, or the natural log of market value of equity (MTB), is used as the measurement. Like (Khalifa et al., 2022), they measure conservatism using Basu's (1997) regression based on market value and conditional conservatism.

According to the study's findings, a number of academics combine market value-based assessments with accrual-based data to quantify accounting conservatism. The academics who follow combine market value with accrual-based accounting conservatism. (Barth, 2000) put the Ohlson valuation model to the test Ohlson (1995) created an accounting-based model that takes into consideration Book Value of Equity (BVE) and net income (NI) as important factors when valuing a firm. Ohlson's methodology therefore establishes a clear connection between accounting quantities and business value. In addition to establishing a clear link between accounting numbers and business value, this approach provides benefits. Instead of depending on market pricing, as in many other valuation studies now in existence, this research demonstrates how to estimate business value using accounting numbers.

As a result, the model offers a different value benchmark for study in valuation-based accounting. In 2007, (Givoly et al., 2007) describe how earnings, cash flows, and accruals have changed over the last 40 years. Numerous metrics for reporting conservatism were found and looked at, as there isn't one definition of conservatism that is widely acknowledged. The findings demonstrated that the buildup of non-operating accruals and the timing of earnings with respect to the market-to-book ratio (BTM) are two examples of accounting conservatism. The study, (Ahmed & Duellman, 2011) looked at how accounting conservatism influences how managers oversee their investment choices. Since Basu's model only adequately captures conservatism during the estimation period, (Watts, XXXX), in (Ahmed & Duellman, 2011) use two additional proxies for conservatism in the test. The first proxy is an asymmetric timeliness proxy based on Basu (1997), which is estimated using the backward cumulation procedure in (Watts, XXXX). The second proxy for conservatism is the industry-adjusted book-to-market ratio (multiplied by a negative one). Intuitively, conservative accounting results in reduced book value relative to market value. The book-to-market ratio also shows the overall impact of conservatism since the company's founding.

Furthermore, (Yunos et al., 2012) empirically tested the relationship between two ethnic groups: Bumiputera directors (native citizens) and Chinese directors, on the incidence of accounting conservatism in 300 companies in Malaysia. The study used two regression models to test the relationship between ethnicity and conservatism. Both regression models represent two measures of conservatism: Model 1 is asymmetric timeliness introduced by Basu (1997), and Model 2 is accrual-based conservatism proposed by Givoly & Hayn(2000) Both models are appropriate measures of ex-post conservatism, also known as earnings conservatism, which is relevant in relation to contractual issues. (Kim et al., 2013) measures accounting conservatism by using a composite measure that takes the average rank for each individual measure. The first measure, C_Score, was developed by (Khan & Watts, 2009). C_Score builds on Basu's (1997) asymmetric timeliness measure by estimating C_Score for each firm year using a cross-sectional approach based on size, leverage, and market-to-book ratio. The average non-operating accruals scaled by total assets for the five-year period ending in the year before the SEO announcement make up the second conservatism metric, Consv_Accruals (Givoly & Hayn, 2000); (Ahmed et al., 2002); (Ahmed & Duellman, 2011)(Ahmed & Duellman, 2013). The difference between the skewness of cash flow from operations and the skewness of profits before unusual items is used to produce the third conservatism metric, Consv_Skewness.

(Heflin et al., 2015) provide evidence that conditional conservatism reduces the usefulness of GAAP-based earnings for valuation by investors. They use three measures of conditional conservatism. First, use firm-specific earning return regressions based on Compustat's GAAP profits per share in accordance with Basu (1997). By averaging CONSV_CSCOREi,q across each firm's quarters, we can determine CONSV_CSCOREi. More conservative values for CONSV_CSCOREi and, following (Givoly & Hayn, 2000), CONSV_NEGSKEWi, which is the skewness of profits (earnings before exceptional items) less the skewness of net operating cash flow, are indicative of higher conservatism. The researcher also combined these three individual measures of conservatism into an aggregate summary measure, thus summarizing CONSERVATISM as equal to the average rating of the three individual measures.

Ho et al(2015) study on CEO gender, ethical leadership, and accounting conservatism in American financial organizations. These scientists employ Proxi Net income, accruals before depreciation, and net income Basu (1997) are all affected by accounting conservatism, according to (Givoly & Hayn, 2000). Given that they based the measurement on a linear mix of size, leverage, and market-to-book ratio, ( Lara et al., 2016) employed conditional accounting conservatism in accordance with (Khan & Watts, 2009) proxies. Due to its construction, (Khan & Watts, 2009) proxy changes if the determinants of conservatism change, despite criticism of the validity of conservatism measures based on Basu's (1997) model. These researchers conducted robustness tests using three additional conservatism proxies: the conservatism ratio from Callen et al. (2010), a measure based on income and cash flow skewness, and a measure based on accumulated non-operating accruals (Givoly & Hayn, 2000).

The theoretical argument between accounting conservatism and the cost of capital was investigated by (Penman & Zhang, 2020). The findings showed that when accounting is conservative, it is possible to deduce the amount of risk and predict stock returns using accounting- and market-based indicators. (Salehi et al., 2021) examined the connection between management entrenchment and accounting conservatism in Iran.

Conditional conservatism and unconditional conservatism were separated by the researchers. As measured by Beaver and Ryan's (2005) approach, conditional conservatism (Book To Market, or BTM) is a kind of conservatism. The proportion of the accounting value of assets divided by the market value of shares plus the book value of liabilities. Using this regression, BTM would be classified into two parts. The first part is unconditional conservatism, which is equal to -1 times the residual value. Unconditional conservatism (Real Earning Management, or REM) is used to measure this type of conservatism using the (Givoly & Hayn, 2000) model, which measures such an index by discretionary accruals, i.e., REM= discretionary accruals divided by Total Assets.

(Alves, 2021) extends the previous research by empirically examining how board structure affects the magnitude of accounting conservatism for Portuguese listed companies. There are two measurements of accounting conservatism: CONS-MTB (conservatism Market to Book ratio) is the market to book ratio, which intuitively results in a reduction of book value relative to market value. In addition, the market-to-book ratio captures the cumulative effect of conservatism since the beginning of the firm (Ahmed et al., 2002). And the second measure, CONS-ACC (accrual-based conservatism), is operating income plus depreciation minus cash flow from operations reduced by average total assets multiplied by a negative one. This is consistent with the findings of (Givoly & Hayn, 2000); the intuition underlying this measure is that conservative accounting results in persistently negative accruals.

The assessment of accounting conservatism based on market value is smaller than the measurement based on actual value, as can be seen from Table 1 above. The results of this study show that a combined measurement based on accruals and market value is being used in research.

The main researchers' findings, Feltham and Ohlson (1995), that explicit consideration of conservatism is inherent in GAAP, for instance due to the use of accounting depreciation methods, R&D expense ratios, allowances for losses on receivables, and inventory valuation methods, form the foundation of accrual-based accounting conservatism measurement. Earnings return regression was employed by important scholars Basu (1997) and Givoly et al(2007). (Ball & Shivakumar, 2006) further extended their. Estimate of conservatism by assuming a linear connection between accruals and cash flows. The change in net income was employed by (Ball & Shivakumar, 2006).

By regressing the book-to-market (BTM) ratio based on (Khan & Watts, 2009) modifying the Basu (1997) model, Lara et al(2014) empirically shows how to evaluate the skewed and lag components of market value-based accounting conservatism. thus utilizing leverage, C_Score, and G_Score, as well as market value of equity (MTB).

Lead researcher (Barth, 2000) examined Ohlson's (1995) valuation model and pioneered the evaluation of accounting conservatism based on a mix of accruals and market value. According to prior research, it is possible to measure accounting

Based on analysis that the source articles analyzed were published by well-known publishers, namely: Emerald Publishing, Elsevier, SAGE, Wiley-Blackwell, Taylor & Francis, and Springer Nature. Likewise, the reputation of the journal based on the rnking of Scopus is very high, namely between Q3 and Q1. It can be said that the data sources used have high relevance and accuracy based on their publishers and journal rankings.

Based appendix 1, it can be said that most of the articles reviewed in this study are ranked Q1, which is 73%, Q2, which is 23%, and Q3, which is 4%. Researchers use Scopus-based rankings.

The prior research, 50% of the accounting conservatism measures were made using a mix of accrual basis and market value basis, whereas 32% and 18%, respectively, were made using accrual basis measurements(appendix 2). Beginning in 2000, the use of mixed accrual and market value-based metrics increased quickly between 2020 and 2022. However, prior researchers will continue to employ accrual-based and market value-based metrics until 2022.

The following is a graphical image of the period and trend of the measurement method of Accounting Conservatism:

According to the trend inFigure 3 above, market-based measurement usage started to increase between 2005 and 2010, then started to decline between 2011 and 2016, whereas accounting conservatism measurement has tended to remain steady when employed by previous studies up to now. According to the graph above, the adoption of combined asset-based and market-value conservatism assessments increased between 1999 and 2004, peaked between 2011 and 2016, then somewhat decreased between 2017 and 2022. Comparing measures based on accruals or market value, the usage of combined measurements simultaneously based on accruals and market value is quite high in terms of numbers.