parinaz koozehgar

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.

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).