The role of context in the interpretation of verbal probability expressions used in International Financial Reporting Standards

Journal Title: Zeszyty Teoretyczne Rachunkowości - Year 2019, Vol 2019, Issue 101

Abstract

The objective of this study is to specify whether the interpretation of verbal probability expressions (VPEs) by accounting professionals depends on the context in which they have been used in IFRS. For the purpose of this study, a questionnaire was distributed, and a sample of accountants and auditors was asked to interpret the “probable” expression used in IFRS establishing the threshold for recognising various accounting elements. The results provide further support for the hypothesis that the context the VPEs are used in affects their interpretation. The results indicate the problem of inconsistency in the interpretation of these expressions by accounting professionals. Thus, this study should provide some tentative implications for standard setters to consider in using VPEs in IFRS.<br/><br/>

Authors and Affiliations

Sylwia Silska-Gembka, Jerzy Gierusz, Katarzyna Koleśnik

Keywords

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  • EP ID EP518593
  • DOI 10.5604/01.3001.0013.0757
  • Views 108
  • Downloads 0

How To Cite

Sylwia Silska-Gembka, Jerzy Gierusz, Katarzyna Koleśnik (2019). The role of context in the interpretation of verbal probability expressions used in International Financial Reporting Standards. Zeszyty Teoretyczne Rachunkowości, 2019(101), 95-110. https://europub.co.uk/articles/-A-518593