Confirmation bias in accounting judgments : The case for International Financial Reporting Standards for small and medium-sized enterprises
Journal article
Perera, Kaluthanthrige Dona Dinuja, Chand, Parmod and Mala, Rajni. (2020). Confirmation bias in accounting judgments : The case for International Financial Reporting Standards for small and medium-sized enterprises. Accounting and Finance. 60(4), pp. 4093-4119. https://doi.org/10.1111/acfi.12523
Authors | Perera, Kaluthanthrige Dona Dinuja, Chand, Parmod and Mala, Rajni |
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Abstract | We conduct an experiment that investigates confirmation bias in the reporting judgments of accountants when applying International Financial Reporting Standards (IFRS) for small and medium-sized enterprises (SMEs). The results indicate that accountants’ judgments are biased towards the recognition and measurement principles of full IFRS when applying IFRS for SMEs. The results also suggest that confirmation bias in judgments can be mitigated by increasing accountants’ awareness of justification requirements and by using appropriate decision aids. These results are likely to be of interest to the 70-pluscountries that have adopted the SME standard and countries that continue to contemplate its adoption. |
Keywords | confirmation bias; International Financial Reporting Standards; small and medium-sized enterprises; reporting judgment; judgment justification |
Year | 01 Jan 2020 |
Journal | Accounting and Finance |
Journal citation | 60 (4), pp. 4093-4119 |
Publisher | John Wiley & Sons Australia, Ltd |
ISSN | 0810-5391 |
Digital Object Identifier (DOI) | https://doi.org/10.1111/acfi.12523 |
Web address (URL) | https://onlinelibrary.wiley.com/doi/10.1111/acfi.12523 |
Open access | Published as non-open access |
Research or scholarly | Research |
Page range | 4093-4119 |
Publisher's version | License All rights reserved File Access Level Controlled |
Output status | Published |
Publication dates | |
Online | 09 Aug 2019 |
Publication process dates | |
Accepted | 2019 |
Deposited | 19 Jun 2024 |
Additional information | © 2019 Accounting and Finance Association of Australia and New Zealand |
Place of publication | Australia |
https://acuresearchbank.acu.edu.au/item/909v9/confirmation-bias-in-accounting-judgments-the-case-for-international-financial-reporting-standards-for-small-and-medium-sized-enterprises
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