The problems of consistent IFRS interpretation – the case of Poland and the UK

Purpose: The paper addresses the question whether Polish and British accounting professionals, confronted with identical IFRS excerpts, interpret probability expressions differently. Design/methodology/approach: For the purpose of this study, a questionnaire was distributed, and a sample of accountants and auditors from Poland and the UK was asked to interpret the ‘in context’ probability expressions used in IFRS, establishing the threshold for the recognition of various accounting elements. Findings: Our results indicate differences in the interpretation of probability expressions by the Poles and the British. Additionally, we show that the Polish accountants’ attachment to the prudence principle affects their interpretation. However, we are not in a position to state that this principle would not affect the probability level assigned by the British accountants. Originality/value: The paper contributes to the findings of prior studies by providing the first comparative results for Poland and the UK in the field of surveying professional judgements under IFRS. Poland, like other transition economies, offers an interesting, yet challenging area for accounting studies, because its institutional orientation is significantly different to the Anglo-Saxon origins of IFRS. Keywords: IFRS, interpretation, professional judgement, probability expressions. Category of the paper: Research paper.