I don't understand the conservatism principle. Why do losses get recorded but not gains?

The conservatism principle guides accountants in handling uncertainty by choosing alternatives that report lower profits and asset amounts. When uncertainty exists about a gain, it should not be recorded, but when uncertainty exists about a loss, the loss should be recorded. The principle ensures that financial statements avoid overstating assets and income by breaking ties in favor of more cautious reporting. If a loss cannot be measured for a journal entry, it must be disclosed in the notes to financial statements.