Accounting Professional Judgment And Accounting Policy Choice

The objective of financial accounting is to provide enterprise and the interested party with high quality financial information, which they need for decision - making. The quality of financial information should weigh heavily with the interested party when they are making their decision, so it attracts the most attention, especially in capital market where the financial fraudulent practices are occasionally disclosed in present. A lot of factors have impact on the quality of financial information; the choice of accounting policy is the one of them. The process of making choice of accounting policy virtually is the process of accounting professional judgment, so the whole dissertation is based on discussing the relationship of the accounting policy choice and accounting professional judgment, and then surrounding the center of how to optimize the choice of accounting policy by using the accounting professional judgment.The dissertation includes four parts:The first part is about the summary of accounting professional judgment. Above all, it deals with the concept of accounting professional judgment. Then, it analysis the existent necessity of accounting professional judgment, and it point out that accounting professional judgment result from uncertainty of accounting information system; the accounting professional judgment can improve usefulness of accounting information; even though the exhaustive accounting principle would not replace accounting professional judgment. After that, it discuss the inside and outside factors which have impact on accounting professional judgment. At last, it summarize that the characteristic of accounting professional judgment is professional and social, objective and subjective, purposeful and need to be weighed disadvantage and advantage.The second part deals with the factors that can influence the choice of accounting policy and characteristic of the choice of accounting policy. It firstly explains the concept of financial accounting policy and why it is being. Then, it dealswith the economic consequence of accounting policy choice that include direct and indirect economic consequence. After that, it analysis the factors, which include inside and outside, that impact the choice of accounting policy. At last, it summarize that the choice of accounting policy has characteristics that is purposeful, social and need weighing the disadvantage and advantage.The third part is about the relationship of accounting policy and accounting professional judgment. At first, it mainly compares the choice of accounting policy with accounting professional judgment. Then, it elaborates on relationship of the choice of accounting policy and accounting professional judgment. It deals with that the choice of accounting policy provide the room to accounting professional judgment, and accounting professional judgment is the important instrument to optimize the choice of accounting policy. At last, it illustrates the process and means to optimize the accounting policy choice by using accounting professional judgment.The fourth part deals with the measures and advice how to regulate accounting professional judgment circumstance and enhance the ability of accountant for accounting professional judgment. Above all, it analysis the actuality of the accounting professional judgment, and point out that our country is short of the favorable accounting professional circumstance and the ability of accountants for accounting professional judgment is in a low side. Then, it discusses how to perfect the accounting professional judgment circumstance. At last, it deals with the advice to improve the ability of accountant's accounting professional judgment.