Identify where judgments in the financial statements should be disclosed.

Expert Solution

Financial statements are the reports of the company and are very important for its shareholders and stakeholders. Financial statements also plays an important role in obtaining further capital and other term loans.

Disclosure in the financial statement means that the additional information is being provided which is attached to an entity's financial statements. Disclosures are the explanations which are necessary because they reflects the activities which have greatly affected the entities financial results.

Judgements are made by an accountant or manager after considering various scenarios because judgement is reached after choosing from multiple alternatives.
Judgement in the financial statement should be disclosed where due to such judgements the profit shown in the balance sheet can be greatly affected.
Judgements should always made by such professionals which have expert knowledge in accounting and have gained experience through accounting and auditing training. It should be made ethically and ethical standard should also be followed resulting in making informed decisions.

ekkarill92 answered 1 year ago

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