Hypothesis Development: Effects Of IFRS On Accounting Language
2.2 Hypothesis Development: Effects of IFRS on Accounting Language
On the basis of these insights, I propose IFRS has affected the qualitative accounting language in three ways: First, I would expect that IFRS has introduced new vocabulary to the financial reporting language over time (cf. previous examples). A second, related argument is that the relevance of some accounting vocabulary vanished post IFRS adoption over time. A particularly illustrative example of this argument can be observed in the decision of the International Accounting Standards Board (IASB) to change the titles of the individual financial statement components. For instance, the term “Balance Sheet” has been replaced by the term “Statement of Financial Position”, similarly
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