Q3-1. What is judgment and when is it used by accountants?

Q3-2. How can management create an impediment to the exercise of good judgment?

Q3-3. Does U.S. GAAP require that companies disclose information about the assumptions and estimates they make in their financial statements? Explain.

Q3-4. Does IFRS require that companies disclose information about the assumptions and estimates they make in their financial statements? Explain.

Q3-5. Does U.S. GAAP require that companies disclose their accounting policies? Explain.

Q3-6. Does IFRS require that companies disclose their accounting policies? Explain.

Q3-7. What is the difference between the availability and confirmatory biases?

Q3-8. What types of biases are individual decision makers subject to when exercising judgment in addressing accounting issues?

Q3-9. How does the Accounting Standards Codification make the body of U.S. GAAP easier to use?

Q3-10. What is the purpose of a literature hierarchy?