CRITERIA AND APPROACHES FOR DIFFERENTIATION OF ACCOUNTING ESTIMATES FROM THE ESTIMATES OF INDEPENDENT ESTIMATES

Changes and updates to accounting concepts, interpretations, definitions and recognition criteria of assets and liabilities, require periodic updating of accounting estimates for their proper presentation in the financial statements of the non-financial sector. It is common in business enterprises to use the services of independent evaluators whose activity is regulated by the Law on independent valuers. Their activity is crucial for accurate representation of the economic information within the accounting in enterprises. They have the same meaning and preparing accounting estimates issued in connection with the judgments of management regarding the expected economic benefits in the use of assets. In accounting and legal practice is often equated between thеse two assessments. These are two assessments issued in connection with the accounting of business in enterprises.With their juxtaposition and analysing, it is possible to answer the question whether they have common characteristics, based on which it can justify equating them.The relationship between the accounting estimate and the valuation of an independent valuer provokes discussions in accounting theory and practice. The fact is that after many changes in accounting standards currently has no unambiguous definition of an accounting estimate, but there is a definition for a change in accounting estimates.In the present study suggests the terminology, distinguishing criteria and practical approaches to uniquely define and logical linking of interactions and processes associated with the use of accounting estimates and their differentiation from estimates prepared by an independent valuator under the Law on independent valuers for the purposes of accounting in the enterprise.Based on the deduced theory and legislative definitions and features, a comparison is made between the two assessments, seeking specific performance indicators for their differentiation. The purpose of this differentiation is to reduce uncertainty and contradictions in their practical application in accounting theory and practice.The analysis shows that the implementation of the Bulgarian Evaluation Standards aims at approximation and harmonization with the European requirements and tendencies for imposing the profession of independent appraiser and the implemented policies by TEGoVA, as the leading organization of appraisers, in which the professional organization of the Chamber of Independent Appraisers in Bulgaria is a member.