Role Of Professional Judgment Research Articles

The concept of professional judgment of accountant: concept, essence and content

Object: The study aims to consider one of the accounting tools — the professional judgment of an accountant and to generate the most suitable definition from the point of the authors` view for this economic category.
 Methods: The studies have used comparative, logical analysis, typology and grouping, methods of induction and deduction. To ensure the reliability of the study, the literature review utilized the works of various renowned authors on accounting. The comparison of various findings of different studies were scrutinized and based on the analysis of professional judgment resources, a definition of the phenomenon was proposed. IFRSs, which require professional judgment of an accountant, have also been studied and the rationale for the study of the essence of this economic category has been provided.
 Findings: Various approaches of authors related to the concept and classification of accountant's professional judgment were analyzed, and the author's definition of this economic category was formed. The question of the place and role of professional judgment as one of the accounting tools in the accounting system is considered. Justifications are given about its use for measuring accounting objects, reflecting the facts of economic activity of subjects and pre senting financial information to users for correct decision making within the framework of the current accounting standards. The need to analyze the accountant's professional judgment as the main category of accounting theory and develop the concept of professional judgment was justified.
 Conclusions: Professional judgment of the accountant is one of the important economic categories of accounting, which in the current realities plays an important role in the preparation of financial statements of the company and its disclosure, which depends on education, special knowledge of the specialty, experience and other personal characteristics, also on the information on the situation to be solved.

Prestige Projects Limited: Challenges in Transitioning to New Accounting Policy

ABSTRACT This case provides an experiential learning opportunity to (1) appreciate the role of professional judgment in accounting policy choices, (2) evaluate the effect of accounting decisions on other business functions, and (3) understand the challenges in transitioning to a new accounting policy. Prestige's previous auditors had allowed the use of output-based measure (milestones completed) to compute the percentage-of-completion (POC) for its long-term construction contracts. The newly appointed auditors recommended switching to input-based measures (costs incurred) to compute POC. Students must choose the appropriate financial reporting policy, considering accounting and non-accounting issues. The case addresses an important context because almost one in every eight large 500 companies is engaged in long-term construction contracts (AICPA 2013). Although the case setting is in India, it can be used in any country given its GAAP-agnostic nature. The case is best suited for intermediate accounting courses in which the topic of revenue recognition is addressed.

Assessing work capacity \u2013 reviewing the what and how of physicians\u2019 clinical practice

BackgroundAlthough a main task in the sickness certification process, physicians’ clinical practice when assessing work capacity has not been thoroughly described. Increased knowledge on the matter is needed to better understand and support the certification process. In this review, we aimed to synthesise existing qualitative evidence to provide a clearer description of the assessment of work capacity as practiced by physicians.MethodSeven electronic databases were searched systematically for qualitative studies examining what and how physicians do when they assess work capacity. Data was analysed and integrated using thematic synthesis.ResultsTwelve articles were included. Results show that physicians seek to form a knowledge base including understanding the condition, the patient and the patient’s workplace. They consider both medical and non-medical aspects to affect work capacity. To acquire and process the information they use various skills, methods and resources. Medical competence is an important basis, but not enough. Time, trust, intuition and reasoning are also used to assess the patient’s claims and to translate the findings into a final assessment. The depth and focus of the information seeking and processing vary depending on several factors.ConclusionThe assessment of work capacity is a complex task where physicians rely on their non-medical skills to a higher degree than in ordinary clinical work. These skills are highly relevant but need to be complemented with access to appropriate resources such as understanding of the associations between health, work and social security, enough time in daily work for the assessment and ways to better understand the patient’s work place. Also, the notion of an “objective” evaluation is questioned, calling for a greater appreciation of the complexity of the assessment and the role of professional judgement.

Midwives\u2019 experiences of performing maternal observations and escalating concerns: a focus group study

BackgroundFor the past decade, Maternal Mortality Reports, published in the United Kingdom every three years, have consistently raised concerns about maternal observations in maternity care. The reports identify that observations are not being done, not being completed fully, are not recorded on Early Warning Score systems, and/or are not escalated appropriately. This has resulted in delays in referral, intervention and increases the risk of maternal morbidity or mortality. However there has been little exploration of the possible reasons for non-completion of maternal observations.MethodsThe aim of this study was to explore midwives’ experiences of performing maternal observations and escalating concerns in rural and urban maternity settings in the West Midlands of England. A qualitative design involving a series of six focus groups with midwives and Supervisors of Midwives was employed to investigate the facilitators of, and barriers to the completion of maternal observations.ResultsEighteen Midwives and 8 Supervisors of Midwives participated in a total of 6 focus groups. Three key themes emerged from the data: (1) Organisation of Maternal Observations (including delegation of tasks to Midwifery Support Workers, variation in their training, the care model used e.g. one to one care, and staffing issues); (2) Prioritisation of Maternal Observations (including the role of professional judgement and concerns expressed by midwives that they did not feel equipped to care for women with complex clinical needs; and (3) Negotiated Escalation (including the inappropriate response from senior staff to use of Modified Early Warning Score systems, and the emotional impact of escalation).ConclusionsA number of organisational and cultural barriers exist to the completion of maternal observations and the escalation of concerns. In order to address these the following actions are recommended: standardised training for Midwifery Support Workers, review of training of midwives to ensure it addresses the increasing complexity of the maternal population, identification and agreement regarding the organisation of maternal observations among staff, an emphasis on increasing the priority placed on maternal observations in all clinical settings, and clarification and reinforcement of escalation procedures for both midwives and senior clinicians.

СПОСОБИ ТА ПРОБЛЕМИ ФОРМУВАННЯ ПРОФЕСІЙНОГО СУДЖЕННЯ БУХГАЛТЕРА

Стаття присвячена вирішенню проблем формування професійного судження бухгалтером. Відзначено необхідність застосування професійного судження бухгалтером у сучасних умовах господарювання. Оцінено місце та роль професійного судження в організації облікового процесу на підприємстві. Виявлено логічний зв’язок між принципами бухгалтерського обліку і звітності, чинним законодавчо-нормативним регулюванням ведення бухгалтерського обліку та фінансової звітності в Україні і професійним судженням. Визначено основні способи та проблеми формування професійного судження бухгалтером. Проаналізовано переваги та недоліки кожного способу, що надає можливість у кожному конкретному випадку швидко зорієнтуватись і визначитись.

The role of professional judgement in social work assessment: a comparison between Norway and England

ABSTRACTGood quality assessment has a significant role to play in contributing to better outcomes for children in need of protection, so it is important to understand what supports best practice. This paper focuses on the role of professional judgement in assessment, and compares two very different national approaches. In England, governmental responses to perceived failings in the child protection system have led to a highly proceduralised and bureaucratised system and a corresponding down playing of the role of professional judgement. In Norway, professional discretion and judgement have been seen as key to the assessment process, and governmental response to criticism of child protection practice has been to support their use through provision of increased resources. However, too much emphasis on professional judgement and too little procedure may be as problematic as the reverse [Report of Auditor General of Norway. (2012). Document 3:15. Norway: Fagbokforlaget]. So this paper explores the different ways in which professional judgement is understood and addressed in each system and asks what we can learn from them in terms of best assessment practice. Acknowledging child protection as a ‘wicked problem’, we propose a model of Grounded Professional Judgement based on notions of epistemic responsibility and accountability to support the exercise of professional judgement in situations of uncertainty.

ОСОБЛИВОСТІ ЗАСТОСУВАННЯ ПРОФЕСІЙНОГО СУДЖЕННЯ БУХГАЛТЕРА В УМОВАХ ФОРМУВАННЯ ОБЛІКОВОЇ ПОЛІТИКИ ПІДПРИЄМСТВА: ІНСТИТУЦІЙНИЙ АСПЕКТ

Features of professional accountant judgment usage during the formation of accounting policy have been researched. Current approaches to understanding of the nature of accountant judgment have been analyzed. The role of professional judgment in the accounting system in the context of the accounting institutional theory have been examined. Existing alternative embodiments of the accounting policies formation through the exercise of professional judgment in national accounting regulations (standards) have been identified and analyzed. Correlation between the accounting policies and accounting professional judgment on the basis of the basic provisions of institutional theory have been identified. Formal and informal rules of functioning of professional accountant judgment as a separate subinstitution have been grounded. The necessity of carrying out in the present conditions further research in the area of application of professional judgment in conditions of the accounting policies formation in the context of institutional theory have been grounded.

Framework-Based Teaching of IFRS: The Case of Deutsche Bank

This case applies the teaching approach ‘from objective to concepts to principles and rules’ in analyzing the provisions of IFRS 1:First-time Adoption of International Financial Reporting Standards. The case of Deutsche Bank was chosen because banks were at the centre of the recent global financial crisis. Topics addressed in this paper are accounting issues emerging from the crisis. Some accounting standards in place during the crisis have been amended or replaced; others are currently subject to significant revisions by the standard setters. Students analyze accounting standards and proposed improvements to applicable standards in response to these events. The case reveals how adopting IFRS provides an unambiguous opportunity for companies to provide more transparent and relevant financial reporting. In terms of relative transparency, students examine the reconciling items of greatest consequence in Deutsche Bank's transition from US GAAP to IFRS, including key provisions related to consolidation policy and accounting for financial instruments. The important role of professional judgment is emphasized as students evaluate choices regarding selection and application of accounting principles under IFRS.

Structured Risk Assessment in Community Forensic Mental Health Practice

This paper will examine the use of the Historical Clinical Risk Management-20 (HCR-20) by Australian community forensic mental health services (CFMHS) and explore some key issues involved in the application of Structured Professional Judgment (SPJ) risk assessment tools in clinical practice. We used a survey of the use of the HCR-20 by 10 Australian CFMHSs. During the 12-month survey period, the number of assessments conducted ranged from 6 to 186 (median 55). Differences in service models impacted on who was seen, whether reassessments were undertaken, and involvement of generalist mental health staff. Most services employed quality assurance processes and accessed qualified trainers. The use of SPJ tools acknowledges the role of professional judgment while also providing a structure to ensure that relevant evidence-based factors are taken into account. The survey highlighted service model variation as well as the importance of training and quality assurance processes required to ensure that comprehensive violence risk assessments are completed in a valid and reliable fashion.

What to ask in a self-administered dietary assessment website: The role of professional judgement

Professional judgement is a key component of questionnaire development, subjective in nature and rarely reported in this context. It is required in dietary questionnaires to delimit the size while retaining quality of the data. The objective of this study was to describe the nature and extent of professional judgement involved in developing a food database to include in a web-based self-administered dietary assessment. Professional judgement was applied in tandem with a stepwise statistical analysis of hierarchically reported foods in the Australian National Nutrition Survey (NNS95). Statistical analyses determined foods commonly consumed and eaten together and three different forms of cluster analysis were then used to group foods that were most similar in macronutrient content. Professional judgement was required to interpret these groupings and determine the most suitable clustering technique. Face validity of the resulting food groups was determined by recognition of the food name by experienced dietitians, as usually reported in a diet history interview. Applying professional judgement to differentiate between foods after the cluster analysis resulted in an increase from 370 to 501 food groups. A final three-level hierarchy of 19, 103 and 422 groups in the new database compared with 21, 106 and 370 groups of NNS95 was developed. The use of professional judgement in database development is an important step when they are to be used in self-administered assessments. It ensures foods are not only nutritionally appropriate but also conceptually appropriate for recognition by a layperson.

The role of professional judgment in chemical hazard assessment and communication

Most hazard assessment guidelines and regulatory requirements—both nationally and internationally—explicitly advocate the use of professional judgment in hazard assessment. However, the practical application of such judgment (i.e., how and when that judgment should be applied) is often left to the assessor’s discretion. This can lead to inconsistent guidance on the use, handling, and disposal of chemicals and can ultimately result in ineffective hazard communication and chemical management. This paper traces the regulatory rationale and legislative conventions for applying professional judgment in hazard assessment to key global regulations and professional standards. A series of guidelines for applying professional judgment are drawn from these regulations and standards, consistent with sound toxicological concepts and principles. The guidelines are illustrated by cogent examples drawn from the experiences of professional toxicologists and industrial hygienists charged with complying with the norms of hazard assessment. We contend that these guidelines and supporting examples are fully compliant with international regulations, decision-neutral with regard to the stringency of the assessment, and reflective of the harmonized efforts to develop more effective and complete hazard communications. We discuss the regulatory ramifications and needs for better definition of professional judgment in hazard assessments under GHS and REACH.

Earnings Quality under Rules- vs. Principles-Based Accounting Standards: A Test of the Skinner Hypothesis

We provide preliminary confirmation of Skinner's (1995) hypothesis that Canada's relatively principles-based GAAP yield higher accrual quality than the US's relatively rules-based GAAP. These results stem from a comparison of the Dechow-Dichev (2002) measure of accrual quality for cross-listed Canadian firms reporting under both Canadian and US GAAP. However, we document lower accrual quality for Canadian firms reporting under US GAAP than for US firms, which are subject to stronger US oversight and greater litigation risk, reporting under US GAAP. The latter results are consistent with stronger US oversight compensating for inferior accrual quality associated with rules-based GAAP. Consistent with the positive effect of Canada's principles-based GAAP and the offsetting negative effect of Canada's weaker oversight, we find no overall difference in accrual quality between Canadian firms reporting under Canadian GAAP and US firms reporting under US GAAP. Consistent with Skinner's writings, the results imply that it fallacious to attribute perceived deficiencies in Canadian financial reporting to the leeway allowed by principles-based GAAP without allowing for Canada's oversight, which is relatively weak due largely to the absence of a national securities regulator. If anything, over our 1990-2002 sample period, principles-based standards and the consequent role of professional judgment enhance the quality Canadian firms' financial reporting.

An Evaluation of Population Estimates in Florida: April 1, 2000

The housing unit (HU) method is the most commonly used method for making small-area population estimates in the United States. These estimates are used for a wide variety of budgeting, planning, and analytical purposes. Given their importance, periodic evaluations of their accuracy are essential. In this article, we evaluate the accuracy of a set of HU population estimates for counties and subcounty areas in Florida, as of April 1, 2000. We investigate the influence of differences in population size and growth rate on estimation errors; compare the accuracy of several alternative techniques for estimating each of the major components of the HU method; compare the accuracy of 2000 estimates with that of estimates produced in 1980 and 1990; compare the accuracy of HU population estimates with that of estimates derived from other estimation methods; consider the role of professional judgment and the use of averaging in the construction of population estimates; and explore the impact of controlling one set of estimates to another. Our results confirm a number of findings that have been reported before and provide empirical evidence on several issues that have received little attention in the literature. We conclude with several observations regarding future directions in population estimation research.

The role of professional judgment in the local inspection of schools: a study of six local education authorities

Abstract Over the last five years, professional judgment ‐‐ as it relates to education and schooling ‐‐ has become increasingly politicized and problematic: politicized because of the structures of public accountability that now surround it; problematic because of the unresolved tensions between these structures and the ways in which professionals have traditionally exercised their judgment. This paper offers an analysis of these unresolved tensions as they relate to the changing role of a particular professional group and is based on evidence gathered by the authors in the course of an ESRC‐funded programme of research. Our starting point is the situation of local education authority (LEA) advisers/inspectors in a time of transition. That situation has tended to be characterized in terms of a general shift from advice to inspection and a more specific shift from implicit criteria for judgment to explicit criteria for judgment. However, the evidence we have gathered from interviewing over 70 LEA advisers/...