This scheme satisfies the principle about suppression of the oscillations and the principle of stability.

On Conservatism Principle and Its Used;

As a general principle of accountant check, conservatism principle provides a favorable tool for enterprises which can deal with uncertain factors and reduce risks.

In the light of the problems existing in the preparation and application of traditional financial report forms, this paper puts forward some suggestions of making transformation for traditional historical cost based pricing principle, conservatism principle, monetary measuring hypothesis and accounting installment hypothesis on the premise of the accounting.

Through expounding the conception of the intangible assets and analyzing on the cost-like treatment and the capitalized treatment,and as for the affirmation and the discovery of the intangible assets,this paper puts forward a treating method that is based on the capitalization and gives consideration to both the conservatism and matching principle.

Conservatism is a nature responses for uncertainty, and an important convention of financial report.

A reasonable and steady principle can evaluate the risks during the enterprise operation, can prevent risks.

New"enterprise fiscal system"greatly adjusted relative fiscal policy according to conservative principle.

In this paper,proceed from financial management,we have studied how to use conservative principle to reduce the risk in financil management.