Professional judgment is a necessary skill for financial statement preparers, auditors, and adjusters. An accountant with common sense will be able to meet the needs of businesses, the public and investors in the best possible way. Principles-based accounting will help preparers and auditors make and document meaningful accounting judgments. Guidance is also provided for regulators involved in the evaluation of key judgments and recommendations are made for regulators to maintain and produce principles-based standards that provide the framework for professional judgment. The framework is intended for companies of different sizes. Audit committees have a key role in challenging initial judgments. They talk to reviewers and make recommendations to approve key judgments. As business transactions become more complex, the validity and usefulness of financial reporting depends on good judgment. We believe that professional judgment strengthens the quality and integrity of judgments made and we also trust that principles-based financial principles work.