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Accounting policy, GAAP & adjustments · Core

Accounting estimate

Also called: estimate

ELI5

A monetary amount subject to measurement uncertainty.

Used in conversation

“Finance needs to reconcile accounting estimate before the numbers are released.”

Pitch context

You will see “Accounting estimate” in financial models, budgets, board packs and investor materials when the discussion reaches accounting policy, gaap & adjustments.

Why it matters: In accounting policy, gaap & adjustments, a loose definition can change rights, obligations, approval, disclosure or enforceability.

Caution

Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.

Connected terms

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Sources & evidence · 4

Direct term-level sources and supporting source families.