The role of professional judgment in national and international financial reporting standards

In the last decade, following the accounting scandals, accounting profession started to face a changing environment. Almost whole accounting world has accepted convergence towards IFRS as an accounting standards. IFRS named as principle based standard sytsem, and place the professional judgment to the heart of financial reporting. Professional judgment and judgment process, components of judgment and standard-judgment relation became an crucial topic for accounting world.In line with above explanations first section of the dissertation devoted to accounting profession, professional organizations, accounting standards, standard setting process in the Turkey and world, convergence of the standards and dynamics of this process and approach of various leading organization?s to standards.Second section focuses on professional judgment in detail. Section includes definition of judgment and professional judgment, importance of professional judgment, judgment process, relation to education and ethics, disadvantages of process and possible difficulties that may be faced during the judgment process.The third and final section of the dissertation investigates nine of the Turkish Accounting Standards and states the situations that require professional judgment according to fivefold classification.