Convention of conservatism


Convention of conservatism
Accountancy
Key concepts
Accountant · Accounting period · Bookkeeping · Cash and accrual basis · Cash flow management · Chart of accounts · Journal  · Special journals · Constant Item Purchasing Power Accounting · Cost of goods sold · Credit terms · Debits and credits · Double-entry system · Mark-to-market accounting · FIFO & LIFO · GAAP / IFRS · General ledger · Goodwill · Historical cost · Matching principle · Revenue recognition · Trial balance
Fields of accounting
Cost · Financial · Forensic · Fund · Management · Tax
Financial statements
Statement of financial position · Statement of cash flows · Statement of changes in equity · Statement of comprehensive income · Notes · MD&A · XBRL
Auditing
Auditor's report · Financial audit · GAAS / ISA · Internal audit · Sarbanes–Oxley Act
Accounting qualifications
CA · CPA · CCA · CGA · CMA · CAT · CFA  · CIIA  · ACCA  · CIA  · CTP · ICAEW · CIMA  · IPA  ·
This box: view · talk · edit

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.

According to this concept "expected losses are losses but expected gains are not gains". On the basis of this concept closing stock is valued at cost price or market price, whichever is lower. Provision for bad and doubtful debts are maintained.

See also

References


Wikimedia Foundation. 2010.

Look at other dictionaries:

  • Conservatism (disambiguation) — Conservatism is a set of political philosophies that favour tradition. Conservatism or conservative may also refer to: Contents 1 Politics and political philosophy 2 Religion …   Wikipedia

  • Conservatism — This article is about conservatism as a political and social philosophy. For other uses, see Conservatism (disambiguation). Part of a series on …   Wikipedia

  • Conservatism in the United States — For related and other uses, see Conservatism (disambiguation). Part of a series on Conservatism …   Wikipedia

  • Conservatism in Canada — Part of a series on Conservatism …   Wikipedia

  • Convention nationale républicaine de 2008 — John McCain, sénateur de l Arizona et candidat républicain pour les élections présidentielles de 2008. La Convention nationale républicaine de 2008 a lieu du 1er au 4 septembre 2008 au Xcel Energy Center à …   Wikipédia en Français

  • Traditionalist conservatism — Part of a series on Conservatism …   Wikipedia

  • Black conservatism — is an international political and social movement rooted in communities of African descent that aligns largely with the conservative movement. It emphasizes patriotism, independence and self help, free enterprise, and strong cultural conservatism …   Wikipedia

  • Constitutional convention (political custom) — Not to be confused with Constitutional convention (political meeting). A constitutional convention is an informal and uncodified procedural agreement that is followed by the institutions of a state. In some states, notably those Commonwealth of… …   Wikipedia

  • 2000 Republican National Convention — Infobox National Political Convention year = 2000 party = Republican caption = date = July 31 August 3 venue = First Union Center city = Philadelphia, Pennsylvania presidential nominee = George W. Bush presidential nominee state = Texas vice… …   Wikipedia

  • Accountancy — [http://dictionary.reference.com/browse/accountancy , dictionary.com] or accounting is the measurement, statement, or provision of assurance about financial information primarily used by lenders, managers, investors, tax authorities and other… …   Wikipedia