Interpretation and application of new and complex International Financial Reporting Standards

implications for convergence of accounting standards

Parmod Chand, Chris Patel, Arvind Patel

Research output: Contribution to conferenceAbstract

Abstract

This study extends prior research on accounting judgment and decision making research by examining the effects of 'new' and 'complex' accounting standards on judgments of professional accountants. It examines whether there are differences in judgments of professional accountants in Fiji when interpreting and applying selected International Financial Reporting Standards (IFRSs). A significant within-country difference in judgments of professional accountants has serious implications for convergence of accounting standards. The results show that interpretation and application of accounting standards are affected by complexity of the accounting standard and professional accountant's familiarity with the standard. The study also finds strong support for an interactive effect of familiarity with the accounting standards and complexity in accounting standards on judgments of professional accountants. Furthermore, the results show that differences in judgments exist between the Big 4 and non-Big 4 professional accountants when provided with new accounting standards that require complex judgments. The results of this study are of interest to stakeholders at a time when IFRSs are increasingly being adopted throughout the world and standard setters are struggling to promote compliance with those standards.
Original languageEnglish
Number of pages0
Publication statusPublished - 2007
EventAmerican Accounting Association's Annual Meeting - Illinois, USA
Duration: 5 Aug 20078 Aug 2007

Conference

ConferenceAmerican Accounting Association's Annual Meeting
CityIllinois, USA
Period5/08/078/08/07

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