Financial statement is a crucial tool in conveying a company’s financial information, which in turn will help users during decision making based on their assessment of the company’s financial performance. The conservatism principle is one of the numerous principles developed as a guide to ensure reliable financial reporting. However, the application of the principle not only differs between different companies, but also between different periods of the same company.This research is intended to study the impact of financial distress, leverage and firm size on the application of accounting conservatism. The study will be conducted on Indonesian manufacturing companies listed on the Indonesia Stock Exchange during 2015 throughout 2017. This research is a quantitative descriptive research using secondary data in the form of financial statements. Using the purposive sampling method, out of a total population of 151 companies, 100 companies were selected as sample. The analysis model used in this research is the multiple linear regression model.The results of this research indicate that partially, financial distress has an insignificant positive impact on the application of accounting conservatism, leverage has an insignificant positive impact on the application of accounting conservatism, and firm size has a significant negative impact on the application of accounting conservatism. Simultaneously, financial distress, leverage and firm size have a significant impact on the application of accounting conservatism.