Significance of professional judgement in valuation of construction contracts – results of empirical study
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The purpose of this article is to present the role of professional judgement in valuation of long-term contracts. It also attempts to identify factors that determine such judgement. To achieve this goal a survey was conducted in which accountants and auditors were asked to assign a numerical probability resulting in recognizing economic benefits or expected loss associated with the contract categorized in IAS 11 Construction Contracts. The results of the study indicate that the respondents adopt rather a cautious approach when measuring financial result from long-term contracts. Of the analyzed factors that deter-mine the estimations, only the professional experience in an international corporation might have some influence on them.
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