Colliding Worlds: Issues Relating to Language Translation in Accounting and Some Lessons from Other Disciplines

Abstract

This paper explores implications of language translation in accounting. It draws on research on translation in other disciplines, and on insights from applied linguistics. It examines practical problems and solutions explored in other disciplines that we deem relevant to accounting. The paper also examines ideological, cultural, legal and political consequences of translation. We find that the ambiguity inherent in translation is, on the one hand, relevant for the translation of accounting principles and can contribute to accounting convergence. We show, on the other hand, that it has the potential to be exploited in ideologically or pragmatically motivated distortions in the implementation of accounting regulation. We further argue that the importance of translation in accounting is underestimated or disregarded, inter alia because it has limited effect on the culturally and economically most dominant stakeholders. We finally examine implications of translation problems for less powerful stakeholders and smaller language communities.

Are We Lost in Translation? The Impact of Using Translated IFRS on Decision-Making

“…First, the results suggest that using translated versions of the IFRS seems to have a positive effect on decision-making. Although our results do not eradicate concerns about the inherent limitations of translation, they give reason to believe that good translations are beneficial to the application of IFRS and other international standards (see also, Evans et al, 2015). At the same time, the positive association between English language skills and decision-making quality suggests that users who are well trained in English might be able to receive equal results by using the English standard compared to using the German standard.…”

“…However, there is also evidence for a widespread use of translated IFRS (e.g. Evans, Baskerville, & Nara, 2015), in particular in large European economies. 1 As a consequence, it is part of the reality of the use of IFRS that they are consulted by non-native English speakers in the original English version and/or in a translated version.…”

“…Baskerville & Evans, 2011;Evans et al, 2015;Hellmann, Perera, & Patel, 2010;Parker, 2000;Sunder, 2011;Zeff, 2007). Evans et al (2015, p. 27) observe that while 'research into translation is taken seriously in other disciplines, and a large body of research explores problems and solutions in, inter alia, medicine and law, very little exists, by comparison, in accounting'.…”

A review of research on regulation changes in the Asia‐Pacific region

“…This reputation extends to the vast literature on IFRS adoption, including its effect on issues as varied as analyst earnings forecasts (e.g. Chalmers et al, 2012;Cotter et al, 2012), language translation of international standards (Evans et al, 2015), disclosure (e.g. Crawford et al, 2014), policy choice (e.g.…”

Analyzing the problems with the current adoption of IFRS in the companies among India, China, Germany, Russia and Kenya

“…The changes occur around the time of the informational shock, and only in countries and for firms subject to the regulatory change. Evans et al (2015) investigated the implications of language translation in accounting. They also examined the ideological, cultural, legal, and political consequences of translation and reported that the ambiguity inherent in translation was, on the one hand, relevant for the translation of accounting principles and could contribute to accounting convergence.…”