Cambridge
Academy
In London

Introduction

Accounting policies and estimates shape reported results and must be applied consistently, supported with evidence, and documented clearly. This practical program builds core skills in setting and applying accounting policies, developing key estimates, exercising professional judgment, and preparing strong documentation for auditors and management.

Course Objectives

• Distinguish policies, estimates, and judgments in financial reporting

• Apply consistent policy choices and document rationale

• Build and review common accounting estimates and assumptions

• Identify bias risk and strengthen governance over judgments

• Prepare audit-ready memos, disclosures, and supporting files

Target Audience

• Senior accountants and finance supervisors

• Financial reporting and technical accounting staff

• Accountants supporting month-end and year-end close

• Controllers and finance managers reviewing estimates

• Anyone involved in policy decisions and accounting judgments

Course Outlines

Day 1: Policies, Estimates, and the Reporting Environment

• What is a policy vs estimate vs judgment (simple definitions)

• Consistency, comparability, and materiality basics

• Key sources: standards, company policies, and guidance hierarchy

• Documentation expectations for management and auditors

• Activity: Classify real examples as policy/estimate/judgment

Day 2: Building and Updating Accounting Policies

• Choosing policy options (when standards allow choices)

• Writing clear policy statements and scope

• Implementing policy changes: approvals and effective dates

• Practical examples: revenue recognition overview, capitalization policies

• Workshop: Draft or improve an accounting policy note

Day 3: Common Estimates and Assumption Setting

• Estimate process: data, model, assumptions, review

• Key estimates: ECL/impairment, provisions, useful lives, accruals

• Sensitivity analysis and reasonableness checks

• Using external inputs: benchmarks and market data (basics)

• Activity: Build an estimate file checklist and review steps

Day 4: Professional Judgment and Risk Management

• Judgment framework: facts, options, impact, conclusion

• Identifying bias, optimism, and management pressure

• Controls over judgment: review levels, challenge, evidence

• Disclosures: significant judgments and estimation uncertainty

• Case study: Document a complex judgment decision

Day 5: Memos, Disclosures, and Audit Readiness

• Technical memo structure: issue, guidance, analysis, conclusion

• Supporting documentation: evidence pack and cross-references

• Preparing disclosures and ensuring consistency with numbers

• Post-close learnings: improving estimates next cycle