The influence of professional judgment on the use of elements of the accounting method under the application of IFRS

Abstract

The object of research is the accountant's professional judgment, which should be considered as an expression of opinion about the display of information about facts, events, operations of the company's activities in accounting and financial reporting in conditions of uncertainty, as well as the acquisition of responsibility for the results of decisions made on the basis of professional judgment. The expression of professional judgment is inevitable in accounting and reporting in accordance with International Financial Reporting Standards (IFRS). When using the elements of the accounting method, the main tasks, results of application, as well as potential influencing factors on the formation of professional judgment are determined.The interdependence of individual elements of the accounting method and professional judgment in the conditions of application of IFRS lead to the emergence of information risks and the variability of the interpretation of accounting information by users when making management decisions. The variety of operations, facts and events of the company's activity requires the application of different methodological approaches to the formation of information, taking into account their specificities. Under such conditions, the lack of unambiguous recommendations and interpretations prompts the accountant to find its own well-founded position on the expediency of applying certain accounting procedures and methods to display information in financial statements. The availability of professional knowledge of the theory and methodology of accounting, compliance with ethical norms and competencies determines the level of application of professional judgment regarding the use of elements of the accounting method in the conditions of application of IFRS. The practical application of the obtained results will contribute to the determination of uniform methodological approaches in order to ensure the reliability of accounting information provided to users for making management decisions.