Accounting in Times of Uncertainty: Estimates, Provisions, and Going Concern Economic crises make it more difficult to predict cash flows and determine the values of assets and liabilities. The importance of accounting in such circumstances lies in updating estimates, recognizing provisions in accordance with the applicable criteria, assessing an entity’s ability to continue operating, and disclosing the judgments that significantly affect the financial statements. The accounting challenge during a crisis lies in the increased uncertainty surrounding the outcomes of economic events and its impact on the reliability of financial measurement. Uncertainty refers to the difficulty of determining the amount, timing, or probability associated with the flow of economic benefits. Weak demand, customer defaults, and rising financing costs may lead to a decline in asset values or an increase in liabilities. Meanwhile, outdated assumptions may result in the presentation of profits that do not reflect economic reality. Dimensions of the Accounting Crisis 1. Accounting Estimates Estimating credit losses, determining the recoverable amount of assets, and valuing inventory require assumptions based on reasonable and available information. When new information emerges, management must revise its estimates and account for changes in accordance with IAS 8, while disclosing the effects of material estimates. 2. Provisions The existence of a general economic crisis is not, in itself, sufficient grounds for recognizing a provision. IAS 37 requires a present obligation arising from a past event, a probable outflow of resources to settle that obligation, and the ability to make a reliable estimate of its amount. A provision is measured at the best estimate of the obligation. However, general future risks, in the absence of a present obligation, cannot be recognized as provisions. 3. Going Concern Management must examine liquidity, debt obligations, cash flows, and financing plans to determine whether preparing the financial statements on a going concern basis remains appropriate. When a material uncertainty exists that may cast significant doubt on the entity’s ability to continue as a going concern, it must be clearly disclosed in accordance with the requirements of IAS 1. Conclusions Based on the above, economic crises increase the impact of professional judgment on financial statements; however, they do not justify arbitrary figures or excessive conservatism. The reliability of financial reporting improves when estimates are supported by up-to-date evidence, provisions are recognized in accordance with the applicable recognition criteria, and going concern risks are presented transparently. Recommendations Based on the findings, it is recommended that entities update collection forecasts and cash flow projections regularly, document the sources of assumptions and test reasonable scenarios, review each provision individually, and enhance disclosures regarding material sources of estimation uncertainty and plans to address liquidity risks.