Accounting Judgment
/ˈæk.aʊn.tɪŋ ˈdʒʌdʒ.mənt/
Definitions
- (n.) The exercise of professional judgment by accountants in selecting and applying accounting principles and standards to financial reporting.
The auditor’s accounting judgment was crucial in deciding how to classify the revenue recognition.
Forms
- accounting judgment
Related terms
See also
Commentary
Accounting judgment involves subjectivity and discretion within established accounting frameworks, often impacting financial statement reliability and comparability.
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