Topical Issues of Professional Judgment Application in the Preparation of consolidated Financial Statements

Abstract

The article considers the problem of the application of professional accounting judgment in the compilation of consolidated financial statements (CFS), which, according to the legislation of the Russian Federation, should be prepared in accordance with the international financial reporting standards (IFRS). The methodological basis of the study includes scientific developments of domestic and foreign scientists regarding the problems of the application of professional judgment in the framework of the compilation of consolidated financial statements (CFS). The research methodology involves studying the specifics of determining the existence of control as the basis for consolidation, examining the transformation of the concept of “control” in a historical context by analyzing the relevant and previously applied IFRSs, and examining the concept of the information value of consolidated financial reporting. An analysis of the complexity of determining the actual control of the investor over the object of investment has allowed us to draw a conclusion about the prospects of applying the concept of professional judgment in the Russian realities. The theoretical and practical significance of the study lies in the fact that the results of the study are intended for the effective application of the professional judgment of an accountant as a relatively new accounting and reporting tool in the process of generating consolidated reporting (CFS) by accounting professionals.

Keywords

• consolidated financial statements (reporting)
• professional judgment
• group perimeter
• control
• ifrs