The influence of culture and professional judgment on accounting: an analysis from the perspective of information preparers in Portugal

Authors

  • Manuela Marcelino Superior Technical Officer in Finance and Equity at School of Pharmacy, Universidade de Lisboa
  • Fábio Henrique Ferreira de Albuquerque Adjunct Professor, Instituto Superior de Contabilidade e Administração de Lisboa
  • Joaquín Texeira Quirós Coordinating Professor, Universidade Autónoma de Lisboa
  • Maria do Rosário Fernandes Justino Adjunct Professor, Instituto Superior de Contabilidade e Administração de Lisboa

DOI:

https://doi.org/10.17524/repec.v10i1.1214

Keywords:

Accounting Harmonization, Cultural Values, Accounting Values, Accounting Practices, Professional Judgment.

Abstract

The standards issued by the International Accounting Standards Board (Iasb) are based on principles, which delegate decisions on accounting matters to professional judgment, based on the concepts existing in those standards, with implications for financial reporting. The objective in this study is to analyze the influence of culture on professional judgment, through the analysis of the existence of significant differences in the decisions about the disclosure or recognition of liabilities and assets, as well as to validate (or not) the classification Gray (1988) attributed to Portugal concerning the accounting values of conservatism and secrecy. In that sense, the concepts established in Accounting and Financial Reporting Standard (NCRF) 21, entitled Provisions, Contingent Liabilities and Contingent Assets. Based on the distribution of a questionnaire to the information preparers, which resulted in a sample of 408 professionals, it could be identified through the use of bivariate statistical techniques that there are significant differences in the professionals’ perception of asset and liability disclosure and recognition, revealing a stronger trend towards the disclosure or recognition of liabilities. Concerning conservatism and secrecy, using multivariate statistical techniques, a higher level of conservatism could be verified as an accounting value in Portugal, as well as the existence of an association between conservatism and secrecy. This study attracts standardizing entities’ attention to the importance of aspects related to the information disclosed in the financial statements, particularly regarding the professional judgment.

Author Biographies

Manuela Marcelino, Superior Technical Officer in Finance and Equity at School of Pharmacy, Universidade de Lisboa

M.Sc. from Instituto Superior de Contabilidade e Administração de Lisboa

Fábio Henrique Ferreira de Albuquerque, Adjunct Professor, Instituto Superior de Contabilidade e Administração de Lisboa

Ph.D. from Universidade de Extremadura

Joaquín Texeira Quirós, Coordinating Professor, Universidade Autónoma de Lisboa

Ph.D. from Universidade de Extremadura

Maria do Rosário Fernandes Justino, Adjunct Professor, Instituto Superior de Contabilidade e Administração de Lisboa

Ph.D. from Universidade de Extremadura

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Published

2016-03-31

How to Cite

Marcelino, M., Albuquerque, F. H. F. de, Quirós, J. T., & Justino, M. do R. F. (2016). The influence of culture and professional judgment on accounting: an analysis from the perspective of information preparers in Portugal. Journal of Education and Research in Accounting (REPeC), 10(1). https://doi.org/10.17524/repec.v10i1.1214

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Vol. 10 No. 1 (2016): JANUARY-MARCH

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