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Impacts of Additional Guidance Provided on International Financial Reporting Standards on the Judgments of Accountants

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  • Mala, Rajni
  • Chand, Parmod

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.

Suggested Citation

  • Mala, Rajni & Chand, Parmod, 2014. "Impacts of Additional Guidance Provided on International Financial Reporting Standards on the Judgments of Accountants," The International Journal of Accounting, Elsevier, vol. 49(2), pages 263-288.
    • Handle: RePEc:eee:accoun:v:49:y:2014:i:2:p:263-288
    DOI: 10.1016/j.intacc.2014.04.008
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    3. Lim, Yingzhee & Azmi, Anna & Devi, S. Susela & Mahzan, Nurmazilah, 2017. "Implementation Guidance for Standards and Revenue Trend in Aggressive Reporting," The International Journal of Accounting, Elsevier, vol. 52(4), pages 342-353.

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    More about this item

    Keywords

    Decision aids; Accounting standards; Additional guidance; Complex task; Judgments;
    All these keywords.

    JEL classification:

    • M48 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Government Policy and Regulation

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