1 / 10

Accounting 4570/5570

Accounting 4570/5570. Chapter 2 - International Accounting Patterns, Culture and Development. Purposes of International Classification. Sharpen analysis and prediction Describe and compare systems to better understand them Similarities/Dissimilarities Potential for change

duke
Télécharger la présentation

Accounting 4570/5570

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Accounting 4570/5570 Chapter 2 - International Accounting Patterns, Culture and Development

  2. Purposes of International Classification • Sharpen analysis and prediction • Describe and compare systems to better understand them • Similarities/Dissimilarities • Potential for change • Reasons for dominance • Assess prospects for convergence

  3. ClassificationDeductive Approach • Identify relevant environmental factors and link them to national practices • Describes accounting systems that should be similar, normative • Mueller • Macroeconomic - national economic policies • Microeconomic - branch of business economics • Independent discipline (capable of self-governance) • Uniform (efficient administration)

  4. ClassificationDeductive Approach • Nobe’s model • Macro-uniform (government/tax/legal vs. government/economics orientations) • Micro-based (business/pragmatic oriented or business/economic theory oriented) • Figure 2.1, page 38 • Supported by Doupnik and Salter (1993) • Nobes (1998) distinguished between strong and weak equity market and shareholder orientations (Figure 2.2, page 39)

  5. ClassificationInductive Approach • Accounting practices are analyzed and used to develop accounting groups • Describes what is going on in the business world • Nair and Frank 1980 studies • 1973 and 1975 • Found differences in groupings based on measurement and disclosure practices • Exhibit 2.1, page 40

  6. Cultural InfluencesHofstede’s Study • Study conducted in 1980s • Looked at the structural elements of culture that affect behavior in work • Evaluated values of IBM employees in 50 countries

  7. Divisions of International Classifications • More-developed Latin - France, Italy, Brazil, Spain • Less-developed Latin – Mexico, Chile, Venezuela • More-developed Asian - Japan • Less-developed Asian – Indonesia, Pakistan, India • Near Eastern – Arab countries, Greece, Turkey, Iran • African – East Africa, West Africa • Asian Colonial – Hong Kong, Singapore • Germanic – Germany, Austria, Israel and Switzerland • Anglo-American - U.S., U.K., Canada, Australia • Nordic – Netherlands, Denmark, Finland, Sweden

  8. Cultural InfluencesHofstede’s Study • Basic Value Systems • Individualism vs. Collectivism • Power Distance (Large vs. Small) • Uncertainty Avoidance (Strong vs. weak) • Masculinity vs. Femininity • Short-term vs. Long-term orientation

  9. Cultural InfluencesGray’s Accounting Values • Professionalism vs. statutory control • Uniformity vs. flexibility • Conservatism vs. optimism • Secrecy vs. transparency • There is support for culture as an influential factor in the development of accounting.

  10. International Organizations Involved in Accounting Change • European Union (EU) • United Nations (UN) • Organization of Economic Cooperation and Development (OECD) • World Bank • International Monetary Fund (IMF) • UN Conference on Trade and Development (UNCTAD) - ISARs • World Trade Organization (WTO) • International Organization of Securities Commissions (IOSCO) • IASB and IFAC (discussed in Ch. 7)

More Related