New developments in language issues in accounting regulation: likelihood terms and the certainty of uncertainty

The present study explores the triangular links between language, accounting reporting and uncertainty. To do so, we compare the interpretations of likelihood terms as used in international accounting standards in two languages, French and English. Unlike previous studies, our samples are not distinct but the same participants are surveyed twice. To assess the variability of terms' interpretations, we fix the individual characteristics and context. We show that the translations of likelihood terms within the same individuals displays variability in point and range estimation causing differences in interpretations likely to hamper the comparability targeted by international standards. But such variability could also be induced by the ambiguity of the terms themselves. With a one-language control sample, we demonstrate that variability persists within languages. Our findings suggest that unstable interpretations of uncertainty languages exist both across and within languages. Such contribution is of importance to standard setters if they aim at enhancing the comparability and insure the neutrality of accounting on the consistency of decisions.