We examine whether tertiary accounting education enables students to develop relevant expertise to tolerate ambiguity in International Financial Reporting Standards (IFRS) and exercise appropriate professional judgment. The results show that third-year accounting students are more tolerant of ambiguity than first-year students, though the difference is insignificant. A significant difference exists between first-year and third-year students in their preference for using IFRS across ten financial reporting contexts. The findings reveal that IFRS-based tertiary accounting education programs have a positive impact on preparing accounting students to practice under IFRS regime, hence accounting standard setters and educators should focus on enhancing such programs.
- Ambiguity tolerance
- International Financial Reporting Standards
- Professional judgment
- Tertiary education
- U.S. GAAP