Translation of IFRS Standards into Local Languages: Understanding Problematics of Translation

This paper discusses the nature of the challenges related to the linguistic translation of IFRS and explores some of procedures that are aimed to respond to these challenges. Using archival data about the work of the Translation Review Committee (RC), translation guidelines and other materials provided by IASB as well as nine interviews of two translators and six RC members, the translation practice is described and the shifting influences of various professional and regulatory institutions on the translation are explored. The paper shows three issues. First, the paper shows that the quality of translations is far from a straightforward issue because translation cannot be accomplished without interpretation of the original standards and thus the target language text is a compromise between those who participate in the translation process. Second, translation of IFRSs sometimes involves tradeoff between formal fidelity to original standards and readability of the translated standards among the target language users of IFRS. Third, knowledge on accounting is essential in the translation of IFRS. The issues raised in this paper contribute to the formation of translation policies as a part of standard-setting process.