Accounting conservatism ought to be the approach embraced by every company and organization. Why? It seems that boards of directors tend to get a big optimistic, thus coming up with what might best be described as the "Jesus Money Principal."
Under that principal, the assumption is that profits will just happen, as if Jesus will show up and give a company a big old bag of cash.
More than one organization has gotten in trouble with overly rosy accounting. Being conservative in forecasts is perhaps the best way to deal with downturns and other calamity.