The Research On Accounting Professional Judgment Of Contingencies

The more economy develops,the more important accounting is.With the further deepening of economic globalization,countries around the world have increasingly become a community of destiny in the economic field.In this process,the status of accounting as a general business language has become increasingly significant.However,accounting itself is not an exact discipline.In face of uncertainty in the objective environment and economic events,accounting standards and accounting systems have a certain degree of uncertainty,which makes accounting not completely dependent on rules.Accountants are required to conduct necessary professional judgments based on certain accounting principles,so as to better reflect financial statement and operating results.This dissertation is based on the background of the new ages and the existing literature at home and abroad.First of all,it discusses the origin,connotation and extension of the concept of accounting professional judgment.Then it refers to the definition and characteristics of the framework of accounting professional judgment.The basic elements of accounting professional judgment framework includes objectives,basis,principles,methods and contents.A Professional Judgment Framework for Financial Reporting Decision Making—an international guide for preparers,auditors,regulators,audit committees,regulators and standard setters,issued by the Institute of Chartered Accountants of Scotland(ICAS),is introduced and analysed.Secondly,among uncertain issues,the dissertation chooses the most representative of the uncertain characteristics of the event to do the research,including at the standard level and the practical level respectively.This dissertation makes an international comparison at the standard level,including CAS,FAS and IAS.At the practical level,statistical methods are used to analyze the current situation of information disclosure of listed companies abou contingencies in China from 2015 to 2017.Charts and graphs are made on the listed sectors,industries,specific projects and risk disclosure,and we find out the main problems and possible reasons from the perspective of accounting professional judgment.Then inspired by the relevant theoretical basis and international experience,this dissertation analyses the problem encountered in the professional judgment of contingent event specific business using four processes,intending to provide the necessary reference for the majority of accountants in the process of accounting treatment.It illustrates the urgency of the construction of the professional judgment framework of contingencies.Finally,the dissertation identifies the key judgment points of Contingency Accounting Standard and tries to establish a professional judgment framework for contingency accounting which is suitable for China's national conditions.China's accounting professional judgment framework of contingencies includes four processes: knowledge gathering and analysis,assessment of accounting guidance,process for making a judgement,documentation of judgement.