Abstract

The financial reports released by the Khartoum Stock Market (KSE) banks provide details on the levels of conservatism in accounting of financial information, especially in the sense of an uncertain economic environment, over 11-year time series for the period from 2008 to 2019. The objective of the investigation is to Specify the relation between the causes of economic instability (liquidity, exchange rate, inflation, and Gross Domestic Product), and conservatism in accounting. The outcome of the research support that in the financial reports there is a proportionally intimate priority between accounting conservatism, and economic fluctuations, these variables have a direct and significant impact on accounting conservatism, which makes these reports able to predict the future, and reduce risks, and make investment decisions consistent with investment conditions surrounding.