What do you understand by the concept of conservatism . Why is it also called the concept of prudence. Why is it not applied as strongly today as it used to be in the Past?

"conservatism in the balance sheet is of dubious value if attained at the

expense of conservatism in the income statement, which is far more

significant."

A branch of accounting that requires a high degree of verification before making a legal claim to any profit. Accounting conservatism will recognize all probable losses as they are discovered and most expenditures as they are incurred. Revenue will be deferred until it is verified. Having strict revenue-recognition criteria is one of the most common forms of accounting conservatism.