BEHAVIORAL DRIVERS OF ASSESSMENT IN ACCOUNTING AND REPORTING

Abstract

The article is devoted to the study of the aspects of the influence of behavioral factors on the methodology for evaluating objects in the accounting and reporting system. Understanding behavioral factors in the economy contributes to the improvement of accounting practices, providing a balance between the main interests of management, owners and stakeholders. On the contrary, ignoring behavioral aspects can lead to a loss of objectivity of accounting data and a decrease in the accuracy of reporting. The purpose of the study is to extrapolate the principles of prospect theory to accounting methodology, which allows us to determine the nature of the manifestations of behavioral models and patterns in managers, stakeholders and accountants when choosing an assessment methodology, depending on the influence of the external environment (and especially in critical conditions of the economy in a state of full-scale war). An attempt is made to explain the logic of choosing and applying certain types of accounting estimates for different scenarios of activity and depending on the behavioral models of management and stakeholders, and to generalize this dependence in the form of a model. The research methodology is based on an interdisciplinary approach that combines the analysis of theoretical provisions of behavioral economics, methodological accounting techniques, empirical data from companies' financial statements and a case study using this reporting as an example. The study uses qualitative analysis methods to identify behavioral drivers, comparative analysis to assess their impact on the choice of accounting policies, including in conditions of significant risks and economic instability caused by war, and to compare different views of researchers on the issues under study. It was found that some behavioral models can lead to an irrational method of assessment; and the most risky models of behavior (such as opportunism and manipulativeness) contribute to the aggressive and risky use of accounting estimates, while more ethical models can motivate the choice of methods that contribute to minimizing risks and increasing the accuracy of accounting and reporting data.