IDEAS home Printed from https://ideas.repec.org/a/eee/jiaata/v27y2016icp1-12.html
   My bibliography  Save this article

Interpretation of probability expressions in accounting: The effects of frame switching

Author

Listed:
  • Huerta, Esperanza
  • Petrides, Yanira
  • Braun, Gary P.

Abstract

We report the results of an experiment that examines the interpretation of probability expressions included in the International Financial Reporting Standards by bicultural individuals. In particular, we examine the impact of a phenomenon known as frame switching, which occurs when the thinking processes of bicultural individuals are influenced by the language they use. We compared the interpretation of participants from two distinct cultures (Americans and Mexicans) and from participants who share both cultures (Mexican-Americans). We find, consistent with the expected effects of frame switching, that the interpretations of probability expressions by Mexican-Americans were influenced by the language in which they read the standards. The responses of Mexican-Americans reading the standards in Spanish tended toward those of Mexicans; whereas the responses of Mexican-Americans reading the standards in English tended toward the interpretations of Americans.

Suggested Citation

  • Huerta, Esperanza & Petrides, Yanira & Braun, Gary P., 2016. "Interpretation of probability expressions in accounting: The effects of frame switching," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 27(C), pages 1-12.
    • Handle: RePEc:eee:jiaata:v:27:y:2016:i:c:p:1-12
    DOI: 10.1016/j.intaccaudtax.2016.06.001
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1061951816300167
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.intaccaudtax.2016.06.001?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Doupnik, Timothy S. & Riccio, Edson Luiz, 2006. "The influence of conservatism and secrecy on the interpretation of verbal probability expressions in the Anglo and Latin cultural areas," The International Journal of Accounting, Elsevier, vol. 41(3), pages 237-261.
    2. Huerta, Esperanza & Petrides, Yanira & Braun, Gary P., 2013. "Translation of IFRS: Language as a barrier to comparability," Research in Accounting Regulation, Elsevier, vol. 25(1), pages 1-12.
    3. David Luna & Torsten Ringberg & Laura A. Peracchio, 2008. "One Individual, Two Identities: Frame Switching among Biculturals," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 35(2), pages 279-293, March.
    4. Doupnik, Timothy S. & Richter, Martin, 2003. "Interpretation of uncertainty expressions: a cross-national study," Accounting, Organizations and Society, Elsevier, vol. 28(1), pages 15-35, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Prather-Kinsey, Jenice & Boyar, Scott & Hood, Anthony C., 2018. "Implications for IFRS principles-based and US GAAP rules-based applications: Are accountants’ decisions affected by work location and core self-evaluations?," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 32(C), pages 61-69.
    2. Zhang, Yuqian & De Zoysa, Anura & Cortese, Corinne, 2023. "Foreign language effect in accounting uncertainty expressions: Interpretation and probabilistic estimation," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 50(C).
    3. Jerzy Gierusz & Katarzyna Kolesnik & Sylwia Silska Gembka, 2019. "The Interpretation of "in Context" Verbal Probability Expressions Used in International Financial Reporting Standards - Evidence from Poland," European Financial and Accounting Journal, Prague University of Economics and Business, vol. 2019(1), pages 25-45.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kettunen, Jaana, 2017. "Interlingual translation of the International Financial Reporting Standards as institutional work," Accounting, Organizations and Society, Elsevier, vol. 56(C), pages 38-54.
    2. Huerta, Esperanza & Petrides, Yanira & Braun, Gary P., 2013. "Translation of IFRS: Language as a barrier to comparability," Research in Accounting Regulation, Elsevier, vol. 25(1), pages 1-12.
    3. Lisa Evans & Rachel Baskerville & Katariina Nara, 2015. "Colliding Worlds: Issues Relating to Language Translation in Accounting and Some Lessons from Other Disciplines," Abacus, Accounting Foundation, University of Sydney, vol. 51(1), pages 1-36, March.
    4. Laaksonen, Jenni, 2022. "Translation, hegemony and accounting: A critical research framework with an illustration from the IFRS context," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 89(C).
    5. Prather-Kinsey, Jenice & Boyar, Scott & Hood, Anthony C., 2018. "Implications for IFRS principles-based and US GAAP rules-based applications: Are accountants’ decisions affected by work location and core self-evaluations?," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 32(C), pages 61-69.
    6. Hellmann, Andreas & Patel, Chris & Tsunogaya, Noriyuki, 2021. "Foreign-language effect and professionals’ judgments on fair value measurement: Evidence from Germany and the United Kingdom," Journal of Behavioral and Experimental Finance, Elsevier, vol. 30(C).
    7. Sami El Omari & Mohamed Taieb Hamadi & Wafa Khlif, 2016. "La diversité des sources d'interprétation et d'application des normes comptables internationales ; un frein à la convergence de la pratique," Post-Print hal-01900554, HAL.
    8. Wehrfritz, Martin & Haller, Axel, 2014. "National influence on the application of IFRS: Interpretations and accounting estimates by German and British accountants," Advances in accounting, Elsevier, vol. 30(1), pages 196-208.
    9. Tsunogaya Noriyuki & Okada Hiromasa & Patel Chris, 2011. "The Case for Economic and Accounting Dualism: Towards Reconciling the Japanese Accounting System with the Global Trend of Fair Value Accounting," Accounting, Economics, and Law: A Convivium, De Gruyter, vol. 1(2), pages 1-56, October.
    10. Rodrigo de Oliveira Leite & Ricardo Lopes Cardoso, 2020. "The Theory of Cognitive-Conditional Conservatism in Accounting," Mathematics, MDPI, vol. 8(9), pages 1-7, September.
    11. Noriyuki Tsunogaya & Parmod Chand, 2012. "The Complex Equilibrium Paths towards International Financial Reporting Standards (IFRS) and the Anglo-American Model: The Case of Japan," The Japanese Accounting Review, Research Institute for Economics & Business Administration, Kobe University, vol. 2, pages 117-137, December.
    12. Peipei Pan & Chris Patel, 2018. "The Influence of Native Versus Foreign Language on Chinese Subjects’ Aggressive Financial Reporting Judgments," Journal of Business Ethics, Springer, vol. 150(3), pages 863-878, July.
    13. Hellmann, Andreas & Patel, Chris, 2021. "Translation of International Financial Reporting Standards and implications for judgments and decision-making," Journal of Behavioral and Experimental Finance, Elsevier, vol. 30(C).
    14. Jerzy Gierusz & Katarzyna Kolesnik & Sylwia Silska Gembka, 2019. "The Interpretation of "in Context" Verbal Probability Expressions Used in International Financial Reporting Standards - Evidence from Poland," European Financial and Accounting Journal, Prague University of Economics and Business, vol. 2019(1), pages 25-45.
    15. Heidhues, Eva & Patel, Chris, 2011. "A critique of Gray's framework on accounting values using Germany as a case study," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 22(3), pages 273-287.
    16. Zhang, Yuqian & De Zoysa, Anura & Cortese, Corinne, 2023. "Foreign language effect in accounting uncertainty expressions: Interpretation and probabilistic estimation," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 50(C).
    17. Yasemin Zengin Karaibrahimoglu & Burcu Guneri Cangarli, 2016. "Do Auditing and Reporting Standards Affect Firms’ Ethical Behaviours? The Moderating Role of National Culture," Journal of Business Ethics, Springer, vol. 139(1), pages 55-75, November.
    18. Kipnis, Eva & Demangeot, Catherine & Pullig, Chris & Broderick, Amanda J., 2019. "Consumer Multicultural Identity Affiliation: Reassessing identity segmentation in multicultural markets," Journal of Business Research, Elsevier, vol. 98(C), pages 126-141.
    19. Poudel, Ghanshyam & Hellmann, Andreas & Perera, Hector, 2014. "The adoption of International Financial Reporting Standards in a non-colonized developing country: The case of Nepal," Advances in accounting, Elsevier, vol. 30(1), pages 209-216.
    20. Lambarraa, Fatima & Riener, Gerhard, 2015. "On the norms of charitable giving in Islam: Two field experiments in Morocco," Journal of Economic Behavior & Organization, Elsevier, vol. 118(C), pages 69-84.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jiaata:v:27:y:2016:i:c:p:1-12. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/journal-of-international-accounting-auditing-and-taxation .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.