Convention of Conservatism

The convention of conservatism is the rule of ‘playing safe’. This policy tends to minimize rather than make too much of net assets and net income. Convention of conservatism generates consistent balance financial results from industry to industry and from year to year

Accounting Conventions

Accounting Conventions Learning Objectives: What are accounting conventions? Explain important accounting conventions. The term “conventions” includes those customs or traditions which guide the accountants while preparing the accounting statements. The following are the important accounting conventions. Convention of Disclosure Convention of Materiality Convention of