A professional judgement framework for financial reporting

This new practical guide helps all those involved in financial reporting make professional judgements.

Irrespective of whether you are an auditor, a preparer, an audit committee member or a regulator this practical guide provides a structure which aims to help you come to a sound judgement when you have a complex financial or narrative reporting decision to make.

It can be used by accountants and non-accountants, whether in the private or not-for profit sectors, irrespective of size and type of organisation and where based in the world. It also provides a useful training guide for students or those new to decision making who wish to share the experience of those who have been there and done it before.

The framework identifies core principles and provides a structured process to guide decision makers through how to make, assess and document significant judgements. It targets significant judgements across narrative and financial reporting including accounting treatment, materiality and disclosures. It is designed to fit within the context provided by applicable accounting standards.

The guide replaces the 2012 edition of this framework. The 2016 edition is shorter and more interactive for online readers. Importantly, it also includes a new framework for audit committee members and further material on ethical decision making. It also has been broadened to make it more widely applicable internationally, as well as across different sectors.

To contribute to improvement of narrative and financial reporting world-wide, ICAS encourages use of this guidance within organisations and we allow the guidance to be reproduced, stored and transmitted in any form, with appropriate acknowledgement and notification to ICAS. Please contact accountingandauditing@icas.com.

Download A Professional Judgement Framework for Financial Reporting

Download now


  • Audit and Assurance
  • Corporate and financial reporting
  • Guidance

Previous Page