scholarly journals Is There A Favorable Cultural Profile For IFRS?: An Examination And Extension Of Gray's Accounting Value Hypotheses

2013 ◽  
Vol 12 (2) ◽  
pp. 167 ◽  
Author(s):  
David R. Borker
Keyword(s):  
Cultural Values ◽  
Financial Reporting ◽  
Cultural Dimensions ◽  
Accounting Systems ◽  
Practical Applications ◽  
Four Dimensions ◽  
Financial Reporting Standards ◽  
Culture Dimensions ◽  
Statutory Control ◽  
Gray Values

Gray (Gray, 1988) proposed a link between Geert Hofstedes (Hofstede, 1980) popular national culture dimensions used in comparative management analysis and his own comparative concepts for accounting. In the past twenty-four years, Grays work has been cited by over 650 scholars. His article presented a hypothetical set of complex correspondences between Hofstedes original four dimensions of Power-distance, Individualism, Masculinity, and Uncertainty Avoidance and Grays accounting values of Professionalism versus Statutory control, Uniformity versus Flexibility, Conservatism versus Optimism, and Secrecy versus Transparency. Grays accounting dimensions were intended to capture underlying cultural values that would tend, in the absence of external influences or other factors, to influence a culture toward the development of certain types of accounting systems. The purpose of this paper is to identify which Gray values and which corresponding Hofstede cultural dimensions would be most supportive of the establishment of accounting standards like the International Financial Reporting Standards (IFRS), currently being adopted by nations throughout the world. A specific set or profile of Gray values most conducive to IFRS is identified and termed the IFRS-favorable profile. In arriving at this profile, the paper also addresses two newer Hofstede cultural dimensions, long-term orientation and Restraint versus Indulgence, and extends Grays model by proposing how these two new Hofstede dimensions correspond to Grays four accounting dimensions. The IFRS-favorable profile and the expansion of Grays link to Hofstede are discussed as practical applications to facilitate successful IFRS implementation in individual countries.

scholarly journals An empirical investigation of the culture-IFRS mutual relationship in Jordan

2014 ◽  
Vol 11 (4) ◽  
pp. 28-42
Author(s):  
Sawsan S. Halbouni ◽  
Mostafa Kamal Hassan
Keyword(s):  
Cultural Values ◽  
Financial Reporting ◽  
Emerging Economies ◽  
Empirical Investigation ◽  
Power Distance ◽  
Cultural Orientation ◽  
Cultural Dimensions ◽  
Cultural Dimension ◽  
Mutual Relationship ◽  
Financial Reporting Standards

This paper investigates the mutual relationship between Jordanian practitioners’ individualistic/collectivistic cultural orientation and the International Financial Reporting Standards (IFRS). It explores Jordanian accountants’ perception of the importance of IFRS, the IFRS-embedded cultural values attributed to those accountants, and whether adopting IFRS has contributed to change their cultural orientation. A three-part questionnaire distributed to 81 Jordanian accountants reveals that their cultural orientation is more collectivistic than individualistic. Moreover, accountants who have practiced only IFRS have a more individualistic orientation than those with long experience with the pre-IFRS standards. As the paper analyses only one cultural dimension (i.e., collectivistic versus individualistic), further research should explore other cultural dimensions, such as power distance, masculinity and uncertainty avoidance, religion and language, and their interrelationships with IFRS. Our findings should be relevant to other countries, especially those with developing or emerging economies, as they strive to improve the effectiveness of their corporate financial information.

Pengaruh Budaya Terhadap Akuntansi, Auditing Dan Praktik Akuntansi Internasional

2016 ◽  
Vol 3 (1) ◽  
pp. 78-95
Author(s):  
Priyastiwi Priyastiwi
Keyword(s):  
Cultural Values ◽  
Leadership Style ◽  
Financial Reporting ◽  
National Level ◽  
Deep Understanding ◽  
Cultural Dimensions ◽  
Financial Disclosure ◽  
Cross Cultural Differences ◽  
The Future ◽  
The Impact

The purpose of this article is to provide the basic model of Hofstede and Grays’ cultural values that relates the Hofstede’s cultural dimensions and Gray‘s accounting value. This article reviews some studies that prove the model and develop the research in the future. There are some evidences that link the Hofstede’s cultural values studies with the auditor’s judgment and decisions by developing a framework that categorizes the auditor’s judgments and decisions are most likely influenced by cross-cultural differences. The categories include risk assessment, risk decisions and ethical judgments. Understanding the impact of cultural factors on the practice of accounting and financial disclosure is important to achieve the harmonization of international accounting. Deep understanding about how the local values may affect the accounting practices and their impacts on the financial disclosure are important to ensure the international comparability of financial reporting. Gray’s framework (1988) expects how the culture may affect accounting practices at the national level. One area of the future studies will examine the impact of cultural dimensions to the values of accounting, auditing and decision making. Key word : Motivation, leadership style, job satisfaction, performance

A Cross-Country Empirical Investigation of Corruption and its Relationship to Economic, Cultural, and Monitoring Institutions: An Examination of the Role of Accounting and Financial Statements Quality

2002 ◽  
Vol 17 (4) ◽  
pp. 325-350 ◽  
Author(s):  
Marinilka Barros Kimbro
Keyword(s):  
Financial Reporting ◽  
Empirical Investigation ◽  
Financial Statements ◽  
Financial Accounting ◽  
Accounting Systems ◽  
Financial Reporting Standards ◽  
Information Monitoring ◽  
Per Capita ◽  
Cross Country

This paper empirically tests a model that links economic, cultural, and information/monitoring variables to corruption in 61 countries. The results offer significant evidence to suggest that higher GNP per capita, moderate economic growth, effective legal and financial accounting systems, collectivist values and low power distance are associated with countries that have low corruption. Countries that have better laws, more effective judiciary, good financial reporting standards, and a higher concentration of accountants are found to be less corrupt.

Barriers to institutionalization of an IFRS-based model: perceptions of Portuguese auditors

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Alexandra Soares Fontes ◽  
Lúcia Lima Rodrigues ◽  
Carla Marques ◽  
Ana Paula Silva
Keyword(s):  
Financial Reporting ◽  
National Level ◽  
Local Context ◽  
Institutional Research ◽  
Accounting Systems ◽  
Content Type ◽  
Financial Reporting Standards ◽  
Accounting Model ◽  
Barriers To Implementation ◽  
High Level

Purpose In 2010, Portugal’s newly implemented Accounting Standardization System (SNC - Sistema de Normalização Contabilística) aligned Portuguese accounting standards for unlisted companies with International Financial Reporting Standards (IFRS). The purpose of this paper is to explore the influence of the local context and the role of auditors in the institutionalization of this IFRS-based model in Portugal. Design/methodology/approach Drawing from an institutional theory framework, the authors interviewed 16 Portuguese auditors in 2017 (seven years after formal implementation of the SNC) to determine their perceptions on whether barriers to the IFRS-based model persisted. Findings The authors reveal that the code-law institutional logic embedded in the Portuguese context is hindering full institutionalization of the new accounting model. Some persisting barriers to implementation reflected a decoupling between formal requirements and actual practices. Despite these barriers, there has been an encouraging institutionalization of SNC. The authors reveal a high level of commitment of auditors. They draw attention to the engagement of auditors in the institutional work that is intended to assist in SNC implementation, and their role as promoters of a power-knowledge discourse in propagating IFRS institutional logics at the national level, namely, through the justification and rationalization of the reported institutional contradictions. Practical implications The highlighting the authors provide of problems related to accounting change should assist international regulators, the Portuguese standard-setter and professional accounting associations to devise appropriate strategies to promote IFRS-based accounting systems implementation. Originality/value The authors contribute to the skimpy literature on micro institutional analysis and encourage further exploration of the dynamics between the micro and macro levels of analysis in institutional research.

The Effect of Societal Values on Local Government Transparency: Applying Hofstede’s Cultural Dimmensions

2013 ◽  
Vol 11 (4) ◽  
pp. 829-850 ◽  
Author(s):  
Jose Frías-Aceituno ◽  
Lázaro Rodríguez-Ariza ◽  
María-Isabel González-Bravo
Keyword(s):  
Local Government ◽  
Cultural Values ◽  
Financial Reporting ◽  
Local Governments ◽  
Cultural Dimensions ◽  
Social Perspectives ◽  
Societal Values ◽  
Government Websites ◽  
Corporate Social ◽  
Societal Expectations

In the last decade, a growing number of organizations worldwide have started reporting on issues concerning their economic, social and environmental behaviour. However, public administrations show a delay in this regard although there is growing interest from citizens regarding sustainability transparency. This paper contributes to intra-country analyses of non-financial reporting in the public sector by studying transparency concerning sustainability in municipalities; it analyses the coherence between societal values, identified using Hofstede’s cultural dimensions, and local governments’ corporate social responsibility disclosures. We undertook a content analysis of 101 Colombian, Portuguese and Spanish local government websites and employed different graphical and statistical techniques to analyse the extent of disclosure and the relationship with societal expectations of transparency. The results showed several thematic differences between countries in disclosure preferences relating to societal cultural values of collectivism, femininity, tolerance and equity. Countries with equilibrium in all cultural values are more transparent; those with a prevalence of masculine and uncertainty avoidance cultural dimensions are particularly oriented to social perspectives and show a higher preference for strategic and economic information.

Harmonising European Public Sector Accounting Standards (EPSAS): Issues and Perspectives for Europe’s Economy and Society

2014 ◽  
Vol 4 (3) ◽  
Author(s):  
Yuri Biondi
Keyword(s):  
Public Sector ◽  
Financial Reporting ◽  
Accounting Standards ◽  
International Accounting Standards ◽  
Accounting Systems ◽  
The Public ◽  
Financial Reporting Standards ◽  
Adoption And Implementation ◽  
European Public ◽  
Public Sector Accounting

AbstractAccounting systems play a hidden but fundamental role as mode and instrument of representation, coordination and organisation for the public sector and its specific public action. Therefore, financial and accounting reforms transform, implement and reshape public policies as well as the working and very existence of public administration. Last March 2013, the European Commission started a relevant project with the intention to create harmonised “European Public Sector Accounting Standards” (EPSAS) and implement them in the Member States. Between 1995 and 2002, a similar project was already achieved for private sector accounting standards-setting, leading to adoption and implementation of International Financial Reporting Standards (IFRS) issued by International Accounting Standards Board (IASB). The EPSAS project should decide if public sector accounting standards-setting shall follow a similar pattern to converge towards the International Public Sector Accounting Standards (IPSAS) that transplant the IFRS in the public sector. This choice may have fundamental implications for the European (Monetary) Union, since public sector accounting and public finances are fundamental elements of its institutional framework. This thematic issue aims to provide analyses and perspectives on this ongoing public sector accounting harmonisation process in Europe, addressing its governance and contents, as well as its consequences and implications for Europe’s economy and society.

scholarly journals CASE STUDY OF THE ORIGIN AND THE EVOLUTION OF ACCOUNTING SYSTEMS REGARDING TO THE HARMONIZATION OF INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS) IN JORDAN AND ROMANIA

2021 ◽  
Vol 30 (30 (1)) ◽  
pp. 156-163
Author(s):  
Omar Alhato ◽  
Alexandra Botos
Keyword(s):  
Middle East ◽  
Financial Reporting ◽  
International Financial Reporting Standards ◽  
Reporting Standards ◽  
The European Union ◽  
Reporting Standard ◽  
International Financial Reporting Standard ◽  
Accounting Systems ◽  
Financial Reporting Standards ◽  
Middle East Countries

It is valuable to take note that the majority of financial reporting pundits are in agreement that the financial reporting system of a country depends on several factors that include the legal, economic, and cultural background; The development of tasks performed by accounting is persistently inspired by needs of practice. It is clear of that accounting schemes play an essential role in the market economy, particularly in face of globalization of capital markets, where increasing need for comparable, transparent financial statements for the companies. Rather, it is proposed to present information that is used in making reasoned options amongst alternative uses of limited resources in the conduct of business and economic activities. The present paper discusses the possibilities to improve the accounting policies and procedures in Jordan and other Middle East countries in accordance with commitment of the International Financial Reporting Standards (IFRS). Throughout this study we used a qualitative approach, to outline an overview of the history of financial reporting and its evolution from the origin, to the growth and development of accounting systems by studying a considerable amount of bibliographic material, using different textbooks and journals on accounting theories but also public information presented by the accounting organisations and the government of the two analysed countries. Furthermore, the paper reviewed the achievements made in the convergence of International Financial Reporting Standards (IFRS), in the Middle East countries, in Jordanian context and in the European Union, specifically the case of Romania. International financial reporting standard (IFRS) implementation in Jordan has departed through several transitional phases wile in our previous work we noticed that Romania can be considered a benchmark of high degree convergence to IFRS.

scholarly journals Valuation of Biological Assets at Fair Value

2019 ◽  
Vol 13 (3) ◽  
pp. 59-70
Author(s):  
A. O. Beryoza
Keyword(s):  
Financial Reporting ◽  
Foreign Market ◽  
Fair Value ◽  
World Market ◽  
International Standards ◽  
Information Support ◽  
Accounting Systems ◽  
Investment Projects ◽  
Financial Reporting Standards ◽  
The World

Today the globalisation of the world market leads to the necessity of constructive interaction in the international market and forming common standards of accounting. Transnational corporations as a phenomenon of worldwide integration are businesses with units in different countries of the world. Special issues of information support of management in agricultural organisations have become very important in the conditions of the market economy. Clear and transparent accounting in such enterprises requires the existence of common international standards. Such standards could become International Financial Reporting Standards (IFRS). They are designed to provide an understanding of financial processes in different countries for the interaction between investors and potential investment projects located in different national accounting systems. The standard “Agriculture” has great importance for the Russian Federation. Agriculture is one of the leading sectors of our country, supplying products for both domestic and foreign market. Accordingly, the adoption of this standard and the implementation of its provisions is an important and urgent issue of today’s economic reality. Introduction of this standard leads to the formation of fundamentally new methodological bases of the accounting of agricultural activities based on the market value of assets because paragraphs 12–13 of this Standard states that during the initial and subsequent valuation of biological assets will be measured at their fair value fewer costs to selling. Thus, the need to allocate biological assets in the separate account-economic category, their reflection in the accounting at fair value by the provisions of IAS 41 has determined the relevance of the topic, goal, objectives and logic of the article.

scholarly journals Practical Issues in Education and Adoption of IFRS: Evidence from Russia

2021 ◽  
Vol 14 (28) ◽  
pp. 1-16
Author(s):  
Anna VYSOTSKAYA ◽  
◽  
Y. Bora SENYIGIT ◽  
Keyword(s):  
Financial Reporting ◽  
English Language ◽  
Accounting Education ◽  
English Speakers ◽  
Accounting System ◽  
Educational Approach ◽  
Practical Applications ◽  
Financial Reporting Standards ◽  
Communication Difficulties

This paper examines how the recognition and spread of the International Financial Reporting Standards (IFRS) have affected accounting practices and accounting education in Russia. We use evidence from Russia as a case study to provide a historical perspective on the changes in its accounting system and analyze the translation and communication difficulties in accounting practices and education. By conducting Russian accounting textbooks’ content analysis, we highlight IFRS translation issues in order to investigate the positional statement of the problems regarding the challenges with IFRS education. We also discover the current difficulties in teaching IFRS-based accounting to non-English speakers. Our findings outline the interrelation between the educational approach and practical applications of the existing knowledge on financial reporting. Finally, this research addresses the nature of the challenges that emerge due to the linguistic translations of the IFRS. We consider this paper will be of particular interest for non-native English-language speakers, including academics, practitioners, and standard setters.

Cultural Motives in Information Systems Acceptance and Use

2011 ◽  
pp. 864-871 ◽  
Author(s):  
Manuel J. Sanchez-Franco ◽  
Francisco José Martínez López
Keyword(s):  
Cultural Values ◽  
Social Science Research ◽  
Empirical Support ◽  
Cross Cultural ◽  
Cultural Dimensions ◽  
Four Dimensions ◽  
Cultural Research ◽  
Cross Cultural Research ◽  
Communication Practices ◽  
National Boundaries

In view of academic and theoretical perspective, the effects of culture on IS acceptance have been studied by researchers mostly based on Hofstede’s (1980) cultural construct. It has also been shown to be stable and useful for numerous studies across many disciplines. First, Hofstede’s dimensions assume culture falls along national boundaries and that the cultures are viewed as static over time. Second, Hofstede (1980) asserts that central tendencies in a nation are replicated in their institutions through the behaviour or practices of individuals. And, third, Hofstede’s framework explicitly links national cultural values to communication practices; i.e., communication practices using ICT are central to our study (see Merchant, 2002; Samovar, Porter, & Jain, 1981; Stohl, 2001). Furthermore, Hofstede’s model was important because it (a) organised cultural differences into overarching patterns, and (b) conducted the most comprehensive study of how values in the workplace are influenced by culture, which (c) facilitated comparative research and launched a rapidly-expanding body of cultural and cross-cultural research in the ensuing 20 years. Hofstede’s (1980) cultural dimensions serve as the most influential culture theory among social science research, and has received strong empirical support. Hofstede, therefore, contributed the influential work in cross-cultural research. Hofstede (1984, p. 51) defines culture as “the collective programming of the mind which distinguishes the members of one group from another”; and (b) proposes a series of four dimensions (a fifth was added later; that is, Confucian dynamism) that distinguishes between work-related values. The cultural dimensions are individualism-collectivism, power distance, uncertainty avoidance, and masculinity-femininity. Hofstede and Bond (1988) found an additional dimension, which is particularly relevant to Asian culture, Confucian dynamism (i.e., often referred to as long/short term orientation). These value dimensions, which distinguish national value systems, also affect individuals and organizations.

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