University of Bahrain
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Judgment Based Accounting: An Empirical Survey of Accountants Practices in Bahrain

Show simple item record Joshi, P. L. Al-Mudhahki, Jawaher Al-Bastaki, Hasan 2018-07-31T06:57:51Z 2018-07-31T06:57:51Z 2004-05-01
dc.identifier.issn 2210-1454
dc.description.abstract This study examines issues relating to accountants’ professional judgment in financial accounting in Bahrain. Data were gathered through a survey of 32 companies listed on the Bahrain Stock Exchange (BSE). The study reveals that accountants use a high degree of judgment in financial accounting for which they have unstructured information and have alternative choices or have less scope for maneuverability. Examples are: estimation of contingencies, footnote disclosures, intangible amortization, financial instruments, and revenue recognition. However, in financial issues, for which company policies and procedures are documented, less judgment is applied. Accountants also apply either a high or moderate degree of judgment concerning International Accounting Standards, especially IASs 1, 2, 3, 4, 5, 7, 8,10, 14, 23, 27, 28, and 30. This evidence suggests that Bahrain needs to modify these accounting standards for local conditions. Professional experience, company policies, accounting standards, knowledge of law, and educational background also influence the level of an accountant's judgment. However, in the process of applying judgment, professionals do not rely too much on theoretical decision-making models. The study concludes that judgment is applied in situations where the actual proof is missing, future estimates are made and situations in which accounting rules either do not apply or do not provide adequate solutions. en_US
dc.language.iso en en_US
dc.publisher University of Bahrain en_US
dc.rights Attribution-NonCommercial-ShareAlike 4.0 International *
dc.rights.uri *
dc.subject Judgment
dc.subject Accounting
dc.subject Auditing
dc.subject Factors
dc.subject Decision Making
dc.subject International Accounting Standards
dc.subject Bahrain
dc.title Judgment Based Accounting: An Empirical Survey of Accountants Practices in Bahrain en_US
dc.type Article en_US
dc.volume 07
dc.issue 01
dc.source.title The Arab Journal of Accounting
dc.abbreviatedsourcetitle AJA

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