What does Conservatism Principle mean?
A guideline to choose the accounting method that results in less net income and asset valuation when alternatives exist.
Following the conservatism principle, potential losses were recognized immediately.
Conservatism Principle in German, French, Spanish and Italian
GermanVorsichtsprinzip
also Imparitätsprinzip
Vorsichtsprinzip: Verluste eher früher, Gewinne eher später ausweisen.
FrenchPrincipe de prudence
Principe imposant de comptabiliser les pertes probables mais pas les profits latents.
SpanishPrincipio de prudencia
also Principio de conservadurismo
Criterio de no anticipar beneficios y prever todas las pérdidas posibles.
ItalianPrincipio di prudenza
Criterio che impone di valutare le attività al valore minore e le passività al maggiore.
Common phrases with Conservatism Principle
- follow the conservatism principle
- recognize losses conservatism principle
- accounting guideline conservatism principle
Synonyms and opposites for Conservatism Principle
- Synonym Prudence concept