Influence of Culture on Accounting

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Culture can be broadly defined as the art, ideas and way of life of a group of people. It is not something concrete which can be touched or seen yet it is the backbone of any developed society. Just as different cultures have developed different models like, political structure, social hierarchy, occupational patterns, so have accounting norms been influenced by the culture they have developed in.


Uniform implementation of International Accounting Standards is taking a long time mainly for this reason. The concerns and constraints of each country are different and most of the countries have well developed accounting norms and standards which they feel are quite adequate for their needs. It is another story that a reader from an alien culture might find the accounts presentation style too elaborate or too brief
Dieter Ordelheide (2004 p.269) states that accounting is a social institution. He further states that Accounting is concerned with nothing less than the conceptualization of capital, its concrete expression in numbers, as well as its budgeting and monitoring, and thus with a societal institution that is so central to our economic system that it has given it its name. We might talk of global and market driven economies, the ways and means of determining the income or assets are the core of the entire financial and economic set up. Each cultural group uses these to tray and better their financial position within the culture they belong to.
"Professionalism versus Statutory Control-a preference for the exercise of individual professional judgment and the maintenance of professional self-r ...
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