Valuation of assets at fair value: professional judgment of an accountant

Professional judgment is particularly relevant within the modern accounting system when assessing and recording assets at fair value. Research into this area is both theoretically and practically important given the widespread use of this category in current Russian legislation. The primary objective of this article is to summarize the accumulated research literature and systematize the conceptual principles of modern international financial reporting standards (ifrs) in the area of fair value measurement, as they inform the accountant’s professional judgment when measuring various asset groups. The following research methods were utilized: description, grouping, analysis and synthesis, comparison, and logical generalization, as well as elements of the accounting method: documentation, inventory, and reporting. The scientific novelty of this study lies in the development of a business process algorithm for «formation of an accountant’s professional judgment regarding the fair value of an accounting asset». This algorithm is divided into four stages of the accounting process, disclosing all work activities performed by the accountant within each stage, generating various document groups, and using other accounting tools. The theoretical significance of this study lies in the scientific systematization of the interpretation of fair value and in identifying the evolution of views on this accounting category from its inception to the modern measurement concept based on market data and the professional judgment of the accountant. The practical value of this study lies in the development of recommendations for forming professional judgment regarding the valuation of various asset groups, which can be used in the future process of accounting standardization at the level of economic entities, taking into account the specifics, scale of their activities, and modern digital technologies.