Convention of conservatism

From Wikipedia, the free encyclopedia

In business, investment, and accounting, the principle or convention of Conservatism has at least two meanings.

In investment and finance, it is a strategy which aims at long-term capital appreciation with low risk. It can be characterized as moderate or cautious and is the opposite of aggressive behavior.

In accounting, it states that when choosing between two solutions, the one that will be least likely to overstate assets and income should be selected.

[edit] References

• http://www.nysscpa.org/prof_library/guide.htm

[edit] See also

• Generally Accepted Accounting Principles (GAAP)
• U.S. GAAP