Accounting concepts and individual judgement

Many figures in financial statements are derived from the application of judgement in applying
fundamental accounting concepts.
Different people exercising their judgement on the same facts could arrive at very different conclusions.
Interactive question 2: Value of reputation [Difficulty level: Intermediate]
An accountancy training firm has an excellent reputation amongst students and employers. How would
you value this?
See Answer at the end of this chapter.
Accounting