Open AccessThe role of context in the interpretation of verbal probability expressions used in International Financial Reporting Standards
Author(s) -
Sylwia Silska-Gembka,
Jerzy Gierusz,
Katarzyna Koleśnik
Publication year - 2019
Publication title -
zeszyty teoretyczne rachunkowości
Language(s) - English
Resource type - Journals
eISSN - 2391-677X
pISSN - 1641-4381
DOI - 10.5604/01.3001.0013.0757
Subject(s) - interpretation (philosophy) , audit , context (archaeology) , accounting , expression (computer science) , sample (material) , psychology , business , computer science , history , archaeology , chemistry , chromatography , programming language
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. Forthe purpose of this study, a questionnaire was distributed, and a sample of accountants and auditors wasasked to interpret the “probable” expression used in IFRS establishing the threshold for recognisingvarious accounting elements. The results provide further support for the hypothesis that the context theVPEs are used in affects their interpretation. The results indicate the problem of inconsistency in theinterpretation of these expressions by accounting professionals. Thus, this study should provide sometentative implications for standard setters to consider in using VPEs in IFRS.