Accounting Estimation
/ˈæk.aʊn.tɪŋ ˌɛs.tɪˈmeɪ.ʃən/
Definitions
- (n.) The process of making judgments and approximations in accounting to estimate monetary values where exact amounts are not readily determinable.
The accountant applied accounting estimation to value the company's intangible assets.
Forms
- accounting estimation
Related terms
See also
Commentary
Accounting estimation is crucial in financial statements to reflect uncertainty and requires professional judgment to comply with accounting standards.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.