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Translation of IFRS: Language as a barrier to comparability

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

Abstract

This study examines the translation of International Financial Reporting Standards (IFRS) from the official English version into Spanish by Mexican professional accountants. The use of IFRS in languages other than English creates the potential for translation differences that may introduce variation in accounting outcomes when different languages are used. In particular, given the move toward principles-based standards, with the corresponding increase in the proportion of generic phrases, the consistent translation of these terms is likely to become increasingly important. Thirty-eight participants translated (from English to Spanish) a total of 47 phrases excerpted from five different IFRS. Consistent with our hypotheses, we find that translations of accounting-specific phrases have less variation in translation than generic phrases, as exhibited by greater inter-rater agreement and lower relative dispersion.

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  • 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.
    • Handle: RePEc:eee:reacre:v:25:y:2013:i:1:p:1-12
    DOI: 10.1016/j.racreg.2012.11.007
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    2. 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.
    3. Nurunnabi, Mohammad, 2014. "‘Does accounting regulation matter?’: An experience of international financial reporting standards implementation in an emerging country," Research in Accounting Regulation, Elsevier, vol. 26(2), pages 230-238.
    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. 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.
    6. Mirela Nichita & Carmen Turlea, 2015. "Approach Regarding a Framework for Risk Reporting in Order to Enhance the Related Good Practices," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 17(40), pages 1108-1108, August.
    7. Franzen, Laurel & Meckfessel, Michele & Moehrle, Stephen R. & Reynolds-Moehrle, Jennifer A., 2015. "Developments in accounting regulation: A synthesis and annotated bibliography of evidence and commentary in the 2013 academic literature," Research in Accounting Regulation, Elsevier, vol. 27(2), pages 138-159.
    8. 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).
    9. Nurunnabi, Mohammad, 2018. "Perceived costs and benefits of IFRS adoption in Saudi Arabia: An exploratory study," Research in Accounting Regulation, Elsevier, vol. 30(2), pages 166-175.
    10. 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.
    11. 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.

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