Judgments based on interpretation of "new" and "complex" international financial reporting standards (IFRS) within a country

evidence from Fiji

Parmod Chand*, Chris Patel

*Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceedingChapter


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 the judgments of professional accountants in Fiji when interpreting and applying selected IFRS. A significant within-country difference in such judgments has serious implications for the convergence of accounting standards. The results show that the interpretation and application of accounting standards is affected by the complexity of the accounting standard and the professional accountant's familiarity with that standard. The study also finds strong support for the existence of an interactive effect of familiarity with the accounting standards and their complexity on the judgments of professional accountants. Furthermore, the results show that differences in judgments exist between the Big 4 and non-Big 4 professional accountants when they are provided with new accounting standards that require complex judgments. The results of this study are of interest to stakeholders at a time when IFRS are increasingly being adopted throughout the world and standard setters are struggling to promote compliance with those standards.

Original languageEnglish
Title of host publicationAchieving global convergence of financial reporting standards
Subtitle of host publicationimplications from the south pacific region
EditorsP Chand, C Patel
Place of PublicationBingley, UK
PublisherEmerald Group Publishing
Number of pages25
ISBN (Electronic)9781780524436
ISBN (Print)9781780524429
Publication statusPublished - 2011

Publication series

NameStudies in Managerial and Financial Accounting
ISSN (Print)1479-3512

Cite this

Chand, P., & Patel, C. (2011). Judgments based on interpretation of "new" and "complex" international financial reporting standards (IFRS) within a country: evidence from Fiji. In P. Chand, & C. Patel (Eds.), Achieving global convergence of financial reporting standards: implications from the south pacific region (pp. 79-103). (Studies in Managerial and Financial Accounting; Vol. 22). Bingley, UK: Emerald Group Publishing. https://doi.org/10.1108/S1479-3512(2011)0000022009