does accounting conservatism have a bright side 
it does accounting conservatism encourages management to use greater care in decision making it also means more scope for positive surprises instead of disappointing upsets which drive share prices finally it also makes it easier for investors to compare financial results across different industries and time periods the bottom lineaccounting conservatism is a set of bookkeeping guidelines it requires company accounts to be prepared with caution and high degrees of verification the point is to factor in the worst case scenario for a company s financial future 