The Coca-Cola Company, a renowned beverage manufacturer, applies the Conservatism Principle in its financial reporting practices. In 2023, the company identified a potential loss of $80 million related to its investment in a subsidiary due to adverse market conditions in the subsidiary's operating region. Despite the uncertainty surrounding the recoverability of the investment, Coca-Cola recognizes a provision of $60 million to reflect the probable loss. Explain the rationale behind Coca-Cola's conservative approach to recognizing provisions for investment losses. Assess the impact of this conservative accounting treatment on the company's financial position, performance, and disclosures to investors and regulators.