Stanislav Antonov on How Professional Judgements Become Sources of Risk in IFRS Reporting

The October issue of the ‘IFRS in Practice’ journal features an article by Stanislav Antonov, Director of Audit for High-Tech Companies at FBK, titled ‘How to Avoid Material Misstatement Due to Professional Judgments: Four Examples of When It Went Wrong’.

‘The core challenge when exercising professional judgment lies in the fact that those who prepare financial statements are influenced not only by their experience and competence but also by management bias or personal interests,’ the author notes. ‘This results in potentially significant discrepancies in the financial statements, along with intentional or unintentional misrepresentation of financial data across different organisations’.

The article explores the negative consequences of exploiting the IFRS ‘flexibility’ and provides practical guidance on how to mitigate risks associated with professional judgments in financial reporting.

The full article is available to subscribers and accessible via a 3-day trial.