Impacts of additional guidance provided on international financial reporting standards on the judgments of accountants

Rajni Mala*, Parmod Chand

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

1 Citation (Scopus)

Abstract

This pioneering study examines the impact of the provision of additional guidance on International Financial Reporting Standards (IFRS) as a "decision aid" on the accuracy of judgments of the accountants. To extend the prior research on accounting judgment and decision-making, we also examine the interactive effects of task complexity and additional guidance on the judgments of accountants. The results provide evidence that those accountants who are provided with decision aid in the form of additional guidance on IFRS make more accurate judgments than accountants who are not provided with such guidance. Furthermore, the study provides evidence that this additional guidance improves the judgments of accountants when they undertake tasks which they find complex. The results indicate that additional guidance on IFRS needs to be provided and suggests that accountants should exploit any guidance which is currently provided in IFRS and by the International Financial Reporting Standards Interpretations Committee.

Original languageEnglish
Pages (from-to)263-288
Number of pages26
JournalThe International Journal of Accounting
Volume49
Issue number2
DOIs
Publication statusPublished - 2014

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