Estimation rules of information in financial statements

Author:PhD Student Elena Emilia IORDACHE

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Keywords:accounting estimates, re-estimates, reasonable, cost, value, circumstances, prudence

Abstract:
The evaluation is a way to have fair financial statements, but this evaluation it is not always based on certain data and some elements in financial statements some adjustments are needed, in order to present them at their real value.\r\n\r\nAll the evaluation judgments made at the end of the year are mainly realized through estimation techniques. This assumes that each entity should have the ability and own capacity to make reliable estimations, using the professional judgments.\r\n\r\nUsing standard estimation models is not always the most efficient solution for obtaining relevant and reliable information when specific activities are carried on, this being the reason for which professional judgment should be based on informational systems, built on an ongoing basis, depending on the information needs of users.\r\n

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