The book "Accounting Conservatism in Accounting-Based Valuation Models" by Luis Palencia offers a comprehensive analysis of the role of accounting principles in the valuation of companies. It examines how accounting figures, particularly earnings and book values, are used to derive the value of firms. The author focuses on the Discounted Residual Income Model, which theoretically should be independent of accounting rules, but is influenced by the necessity of truncation through terminal values. The monograph highlights the effects of the accounting regime on the accuracy of the Residual Income Model and provides a detailed characterization of the concept of accounting conservatism. Furthermore, it analyzes the interactions between the drivers of Residual Income, particularly profitability and asset growth, and demonstrates that models that take these interactions into account yield more accurate valuations than simpler assumptions.