Interpretation of probability expressions in accounting: The effects of frame switching
Yanira Petrides and
Gary P. Braun
Journal of International Accounting, Auditing and Taxation, 2016, vol. 27, issue C, 1-12
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.
Keywords: Culture; Language; IFRS; Frame switching; Interpretation of accounting standards (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jiaata:v:27:y:2016:i:c:p:1-12
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