The company has quietly made its accounting more conservative, too, so that the profits from new contracts will not be counted before they hatch.

Though German companies are famous for their conservative accounting, Volkswagen has gone out of its way to take additional charges.

"Companies lack pricing power, and the transition to conservative accounting, which eventually will be better for the economy, will reduce earnings expectations until then."

Kley points out that conservative accounting represented an added charge of more than Dm400 million to the 1990 figures.

Its bonds were rated triple A, and it was known for the most conservative accounting.

Some software companies, like Microsoft, use conservative accounting, while others are much more aggressive.

G.M. once was known for its conservative accounting.

Rather than simply adopt conservative accounting, the new team at Tyco has temporized.

But Mr. Olstein said that his more conservative accounting assumptions took the number down.

A conservative accounting of the war's total cost for the United States including costs yet to be borne would probably be about $1.5 trillion.