The Influence of the Institutional Environment on the Implementation of the Professional Judgment of an Accountant in the Context of Dysfunction of Socioeconomic Development: The Theoretical and Methodological Aspect

Abstract

The article is devoted to the study of the theoretical and methodological aspect of the influence of the institutional environment on the implementation of the professional judgment of an accountant in the context of dysfunction of socioeconomic development. In the process of preparing the article, the views of domestic scholars on the problems of professional judgment were analyzed. According to the results of the study, it is found that among domestic scholars there is no unified approach to defining the professional judgment of an accountant. Various aspects of understanding the essence of professional accounting judgment have been allocated, which is considered in the context of the development of accounting policy, the formation of intellectual capital, the theory of behaviorism, education in the field of accounting and institutionalism. The article focuses on the influence of the institutional environment on the implementation of accounting judgment in the context of dysfunction of socioeconomic development. Among the key factors of the institutional environment, aspects of ease of doing business based on the World Bank’s methodology are highlighted: starting your own business, location of production facilities, communal utilities, labor relations, international trade, taxation, dispute resolution, competition, insolvency. The basic categories of institutionalism are considered and the relationship between the dysfunction of the institutional and socioeconomic environment and managerial decision-making by stakeholders under conditions of uncertainty is substantiated. It is concluded that professional judgment plays an important role in the process of preparing financial statements and management reports based on an understanding of the institutional environment in which an economic entity operates. Prospects for further research are outlined – analysis of information reflected in the financial statements and the report on the management of enterprises of a particular industry or region, in order to study the peculiarities of the application of professional judgment in the practical activities of accounting specialists. This will allow to identify the factors of the institutional environment that are of the greatest interest to stakeholders and are appropriately reflected in the reporting of economic entities.