Professional Judgement Explain the Principle of Professional Judgement. When or Why Might

question 51

Essay

Professional judgement
Explain the principle of professional judgement. When or why might it be necessary to employ professional judgement, even in a rules-based system?

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Definitions:

Publicly Traded

A company whose shares are bought and sold on stock exchanges, allowing investors to own a part of the company.

Private Companies

Businesses whose ownership is private and shares are not traded on public stock exchanges.

Measurement Principles

Guidelines that dictate how the economic activities of a company are captured in its financial statements.

Historical Cost

The original monetary value of an asset, reflecting the purchase or production cost without adjustments for inflation or market value changes.