Significance and Implications of Professional Judgement in Accounting and Financial Reporting

ACCOUNTING AND FINANCIAL
REPORTING

Introduction
• The main purpose of the
presentation is to analyse the
business of Qantas Ltd and the
reporting framework which is
followed.
• The assessment would be
focused on evaluating various
aspects for testing of impairment
charges of Qantas Ltd

Significance and Implications of
Professional Judgement
• The quality of the financial reports which is prepared by a
business is heavily dependent on the accounting expertise
and knowledge which are components of professional
judgement.
• Professional judgement of an accountant can ensure that
proper ethical standard is maintained and thereby ensure
that the quality of the financial reports are maintained.

Significance and Implications of
Professional Judgement (Continued)
Implications
• If professional judgement of the accountant is
inappropriate then a true estimate of financial health of
the company cannot be ascertained.
• An extension of the first implication is that if the users if
the financial statements are misguided then they would
take wrong decisions and therefore likely reduce their
overall returns from investments.