Readability level of International Financial Reporting Standards and Business

Subject Areas : business management

parinaz koozehgar ¹ , zahra pourzamani ² , Mahdi Madanchi ³

1 - Department of Accounting, Central Tehran Branch, Islamic Azad University, Tehran, Iran
2 - .. Department of Accounting, Central Tehran Branch, Islamic Azad University, Tehran, Iran
3 - Department of Accounting, Electronic Branch, Islamic Azad University, Tehran, Iran

Received: 2022-04-30 Accepted : 2022-06-19 Published : 2023-03-21

Keywords: Business, readability, International Financial Reporting Standards,

Abstract :

Increasing the readability of International Financial Reporting Standards texts allows audiences to have a better and more accurate understanding of the standard and this in turn will be able to enhance the quality of information provided by companies. Measuring readability of texts is one of the tools used to measure the degree of complexity or difficulty of a text. Considering the importance of readability of International Financial Reporting Standards for using these standards to prepare financial reports of companies in the business environment, in the present study, we examined the readability level of International Financial Reporting Standards using the Flash Readability Index. The results of studies using flash readability index showed that standard number eight (operational parts) is at the simplest level and standard number thirteen (fair value measurement) has a higher level of difficulty than other standards under consideration. These results show that the vast majority of international financial reporting standards are at a difficult level and only two standards are at a somewhat difficult level.