Gartner Research

This Is the Year to Build Technical Judgment in Accountants

Published: 22 February 2019

ID: G00707121

Analyst(s): Finance Research Team


With new principles-based accounting standards replacing specific rules, judgments in technical accounting are growing in importance. But few accountants can reach an informed, objective conclusion and provide documentation to back up the decision. Two steps can help bridge this skill gap.

Table Of Contents

How to Protect Judgments Against Bias

Table 1: 4 Common Biases Manifest in Accounting

Action 1: Teach Accountants How to Overcome Bias

Step 1 – Conduct Preliminary Research

Step 2 – Determine Judgment Complexity

Step 3 – Assess Accounting Guidance

Step 4 – Make the Judgment

Step 5 – Include Relevant Disclosures

Table 2: Coast Capital’s Accounting Treatment Evaluation Framework

How to Bake Technical Judgments Into More Accounting Roles

Action 2: Increase Exposure to Technical Judgment Earlier in Accountants’ Careers

A New Reality That Won’t Go Away

Recommended by the Authors


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