Investigating the Effect of Philosophical Attitude on Understanding the Level of Readability of International Financial Reporting Standards

Subject Areas : Management Accounting

parinaz koozehgar ¹ , zahra pourzamani ² , Afsaneh Tavangar ³ , Mahdi Madanchi Zaj ⁴

1 - Department of Accounting, Central Tehran Branch, Islamic Azad University, Tehran, Iran
2 - Professor, Central Tehran Branch, Islamic Azad UniversityDepartment of Accounting, Central Tehran Branch, Islamic Azad University, Tehran, Iran,( Correspond Author.)
3 - Department of Accounting, Assistant Professor, Central Tehran Branch, Islamic Azad University, Tehran, Iran
4 - Financial Management Department, Faculty of Management, Islamic Azad University E-Campus, Tehran, Iran

Received: 2021-09-24 Accepted : 2021-09-24 Published : 2021-08-23

Keywords: Philosophical Attitude, readability, International Financial Report,

Abstract :

International financial reporting standards are the common language for globalizing financial activities and matching these standards is essential for the global economy because it benefits investors and reduces the cost of access to capital markets around the world. the present study investigates the effect of philosophical attitude on understanding the readability level of international financial reporting standards. In this regard, the opinions of accounting professors, accountants (as academics) and active auditors (as professionals) were used. To test the hypotheses, the Flash readability index, the Close readability index, and two-sample t-test was used. The results of the studies showed that among professionals, readability of standard texts in the group with a philosophical attitude is higher than the group without a philosophical attitude. Among academics, readability of standard texts is not influenced by philosophical attitudes; there is a significant difference between the simplest and most difficult standards among professionals (both those with a philosophical attitude and those without a philosophical attitude). There is no such difference between academics (both with and without philosophical attitude).

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