The role of justification in individual and group decisions about indirect cost allocation – evidence from Poland
The role of justification in individual and group decisions about indirect cost allocation – evidence from Poland

Summary/Abstract: In examining the justifications of accounting decisions which refer to measuring the value of the in-ventory for the purposes of financial accounts, the role of the person in the creation of accounting information is argued. The role of such research is to show that accounting theory assumes ideal cir-cumstances when preparing information that is meant to represent economic phenomena in words and numbers. However, it is influenced by the behavior of the accounting practitioners and their perception of the economic reality in which the decision is made. The activities of these practitioners are silent but influential in terms of the quality of financial information. The study on 274 young practitioners focuses on the essence of their justifications and analyzes the relationship between the arguments raised by the individuals and decision stability after a group discussion. According to the results, the participants who justified their choice using sound, substantive points less often changed their decision during the group discussion. Our findings develop an understanding that, in the application of account-ing principles, and, furthermore, in producing financial reports, substantive and non-substantive (bi-ased) justifications play a role in the stability of accounting choice. Incorporating cognitive biases into the process of developing the justification can influence the accounting choice and alter future deci-sion-making processes, because such a person is more likely to succumb to the pressure of the group

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