Please use this identifier to cite or link to this item:

Title: The Interpretation of Verbal Probability Expressions Used in the IAS/IFRS: The Auditors
Authors: Teixeira, Cláudia
Fialho Silva, Ana
Keywords: verbal probability expressions (VPE); IAS/IFRS; culture; auditors; comparability; Portugal.
Issue Date: 12-May-2009
Citation: Teixeira, C. e Fialho, A. (2009): “The Interpretation of Verbal Probability Expressions Used in the IAS/IFRS: The Auditors Registered with the Portuguese Securities Market Commission”, 32º Congresso Anual da European Accounting Association (EAA), Maio, Tampere, Finlândia
Abstract: One of the main arguments in favour of the adoption and convergence with the international accounting standards published by the IASB (i.e. IAS/IFRS) is that these will allow comparability of financial reporting across countries. However, because these standards use verbal probability expressions (v.g. “probable”) when establishing the recognition and disclosure criteria for accounting elements, they require professional accountants to interpret and classify the probability of an outcome or event taking into account those terms and expressions and to best decide in terms of financial reporting. This paper reports part of a research we carried out on the interpretation of “in context” verbal probability expressions used in the IAS/IFRS by the auditors registered with the Portuguese Securities Market Commission, the Comissão do Mercado de Valores Mobiliários (CMVM). Our results provide support for the hypothesis that culture affects the CMVM registered auditors’ interpretation of verbal probability expressions through its influence on the accounting value (or attitude) of conservatism. Our results also suggest that there are significant differences in their interpretation of the term “probable”, which is consistent with literature in general. Since “probable” is the most frequent verbal probability expression used in the IAS/IFRS, this may have a negative impact on financial statements comparability.
Type: lecture
Appears in Collections:CEFAGE - Comunicações - Em Congressos Científicos Internacionais

Files in This Item:

File Description SizeFormat
paper_eaa_2009_vf.pdf119.05 kBAdobe PDFView/Open
FacebookTwitterDeliciousLinkedInDiggGoogle BookmarksMySpaceOrkut
Formato BibTex mendeley Endnote Logotipo do DeGóis 

Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.


Dspace Dspace
DSpace Software, version 1.6.2 Copyright © 2002-2008 MIT and Hewlett-Packard - Feedback
UEvora B-On Curriculum DeGois