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Conservatism principle - Financial definition

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Translations:      FR  principe de prudence (n.m.)     ES  principio de conservatismo (n.m.)     DE  Grundsatz der Vorsicht (n.m.) 

  Concise definition of the term conservatism principle

The conservatism principle is a GAAP constraint which states that, when choosing between two solutions, the one which has a less favorable outcome is the solution which should be chosen.

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