Accounting is rooted in conservatism. By 'conservatism' I do not mean adherence to any political ideology, I mean a tendency to err on the side of caution when recording Accounting Transactions. This means in regards to estimates you shouldn't record too much revenue or too little expense. What is the rationale behind this concept? How could failing to adhere to it harm investors and other users of financial information?

What are some thoughts on this from a Christian perspective?