Effects of National Culture on Accounting Rule Application
Effects of National Culture on Accounting Rule Application - Essay Example
Nobody downloaded yet
Extract of sample Effects of National Culture on Accounting Rule Application
The study will randomly select Certified Public Accountants from eight states to measure contingent liabilities and contingent assets recognition and disclosure decisions. The study will use an analysis of variance to compare the group average to determine if there are any statistically significant differences between the variables. The proposed study has both a theoretical and practical implication. The study will attempt to validate Tsakumis’ survey that applied Gray’s accounting theory with respect to conservatism and secrecy. From a practical application, the study may identify variables that influence an accountant’s disclosure decisions that could lead to improving information reporting between manager and other stakeholders. The cross-border dynamics of the global economy has consistently required businesses to conduct trade across international lines in order to remain or become competitive. In each host country, the authorities require multinational firms to submit financial statements that adhere to the host nation’s Generally Accepted Accounting Principles (GAAP). However, cultural differences have resulted in accountants exercising a degree of caution relative to adopting new accounting GAAP. The International Accounting Standards Board (IASB) has developed International Accounting Standards (IAS) and, in particular, International Financial Reporting Standards (IFRS). These standards are intended to produce uniformity in financial information reports for all multinational firms globally. In the U.S., the Security and Exchange Commission (SEC) has mandated that all publicly traded firms in the U. S. adopt the IAS by 2016.
The objectives of this study are to measure the effects that national culture has on accountants’ application of accounting rules and regulations under International Accounting Standards 37 with an emphasis on Gray’s accounting values of conservatism and secrecy…
A combined plan has been developed by FASB and IASB for developing revenue recognition and accounting standard concept. In the year 2008, a model had been developed that describes the revenue recognition approach. This model concentrates on asset and liability which may come from ‘enforceable agreement with a customer’.
There are many things that differentiate people in an organization form another. For instance people within the military or police have strong discipline and instantly obey orders unlike people in a business organization who have the luxury of questioning and giving their own suggestions on almost everything.
As human beings evolve so does their culture (Marcus, 1995). People are always striving to improve their state of living for the better. This is done by improving their clothing to fit in better with the weather conditions, while at the same time coping with the need to make them fashionable and easy to keep to hygienically clean.
Management experts have long been interested in studying national cultures because of the impact they can have on the employees and in turn the on the organizational culture. Different theories and models explain national cultures by describing characteristics of cultures.
According to Hofstede (1983), effective organisations operating in multiple countries have adapted management ideas of their own to local cultures. Hofstede (1993) has also highlighted that the different management theories have cultural constraints meaning that these theories have no value once they enter the border of different country with different culture.
The main purpose of this research work, Effects of Colonial Rule on Africa, is to unearth the effects of colonial rule on Africa. Besides, the related issues under discussion include: the factors that led the African nations to be under colonization and the evaluation of the positive and negative influence of colonial rule on Africa.
This concept assumes that a business entity has continuity of life. It will continue for a indefinite period of time. It has no need or intention to close down. This concept is important for valuation of assets and liabilities. Going concern concept influences accounting practises in relation to valuation of assets and liabilities, depreciation of the fixed assets, treatment of outstanding and prepaid expenses.
The organizations worldwide face a number of challenges when they decide to go global. This is a common problem that they face since they do not have any prior knowledge or understanding of the new territory that they will do their business from.