Different Implementation of International Financial Reporting Standards in the Light of Cultural...

8/3/2019 Different Implementation of International Financial Reporting Standards in the Light of Cultural Background

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Different adoption versions of International Financial Reporting Standards (IFRS) in the light of

different cultural backgrounds

1.

Introduction IFRS (1 page)1.1Development of IFRS1.2Reasons for the (voluntary) adoption

(1; abstract (before p.1)

2. Adopted versions of IFRS (2 pages)2.1 Significant differences in certain countries (Germany, England, China/Japan)

2.2 Differences /versions

3 p. 236/4;

3. Causes of the different adopted versions (7 page)3.1Objective factors: (1 p) (not cultutal but it backs up the potential differences caused by

cultural backgrounds): IFRSs backing of/approbation of differences application by

overt options in IFRS: 3-p.237-238/5-6

cover options, vague criteria, 3-p-239/7

3.2cultural factors4. Grays framework based on hofstede

4, 5 (Literature review)

4.1Different dimensions: language, education, religion,..5 p. 26ff.

4.2Different interpretation and application with regard to cultural differences


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4, p. 254

Coservatism and Secrecy

We use Gray's [Gray, S.J. (1988). Towards a theory of cultural influence on the development of

accounting systems internationally. Abacus, 24 (1), 115.] theory of the influence of culture on

accounting to develop hypotheses about the effect the interaction of the accounting values of

conservatism and secrecy and the context in which probability expressions are used in accounting

standards will have on accountants' interpretations of those expressions. Specifically, we expect

accountants in a high conservatism country to assign a higher (lower) numerical probability to verbalprobability expressions that determine the threshold for the recognition of items that increase

(decrease) income than accountants in a low conservatism country

(4, abstract)


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4, p.

240 4


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4, p.

251 5


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4, p.

246 6

(4, p.241/6 ff.)


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(4, p.244/25)

Two major accounting values are influences by cultural differences are Conservatism Secrecy

Examples of different interpretation ofProbability

In Angla and Latin (The influence of conservatism and secrecy on the

interpretation of verbal probability expressions in the Anglo and Latin cultural

areas) p.

in Germany, England and China/Japan

Hofstedes method applied for the interpretation of cultural differences Uncertaintyavoidance

Individualism Achievement orientation Power distance

Consequence: different perception leads to different translation4.3 Incomparability with regard to translation

Different translation: 3-p.237/5; 3-p.242/10;

Language n translation in accounting reasarch (p.4):Official

references\Translation\Equivalence of IFRS across languages - Translation issuesfrom english to german (APIRA-2010-198-Hellmann).pdf(auch in German)Official references\IFRS and exercise of accountants professional judgments - Insights

and concerns from a german perspective.pdf

Translation of Probability in Germany, Spanish, French and China/Japan

Translation of remote in Germany, Spanish, French and China/Japan

5. Avoidance of inconsistent interpretation and application (1 page)Self-cultural awareness and awareness of other cultures in the light of cultural accounting

behaviors
http://official%20references/Translation/Equivalence%20of%20IFRS%20across%20languages%20-%20Translation%20issues%20from%20english%20to%20german%20(APIRA-2010-198-Hellmann).pdfhttp://official%20references/Translation/Equivalence%20of%20IFRS%20across%20languages%20-%20Translation%20issues%20from%20english%20to%20german%20(APIRA-2010-198-Hellmann).pdfhttp://official%20references/Translation/Equivalence%20of%20IFRS%20across%20languages%20-%20Translation%20issues%20from%20english%20to%20german%20(APIRA-2010-198-Hellmann).pdfhttp://official%20references/Translation/Equivalence%20of%20IFRS%20across%20languages%20-%20Translation%20issues%20from%20english%20to%20german%20(APIRA-2010-198-Hellmann).pdfhttp://official%20references/Translation/Equivalence%20of%20IFRS%20across%20languages%20-%20Translation%20issues%20from%20english%20to%20german%20(APIRA-2010-198-Hellmann).pdfhttp://official%20references/IFRS%20and%20exercise%20of%20accountants%E2%80%99%20professional%20judgments%20-%20Insights%20and%20concerns%20from%20a%20german%20perspective.pdfhttp://official%20references/IFRS%20and%20exercise%20of%20accountants%E2%80%99%20professional%20judgments%20-%20Insights%20and%20concerns%20from%20a%20german%20perspective.pdfhttp://official%20references/IFRS%20and%20exercise%20of%20accountants%E2%80%99%20professional%20judgments%20-%20Insights%20and%20concerns%20from%20a%20german%20perspective.pdfhttp://official%20references/IFRS%20and%20exercise%20of%20accountants%E2%80%99%20professional%20judgments%20-%20Insights%20and%20concerns%20from%20a%20german%20perspective.pdfhttp://official%20references/IFRS%20and%20exercise%20of%20accountants%E2%80%99%20professional%20judgments%20-%20Insights%20and%20concerns%20from%20a%20german%20perspective.pdfhttp://official%20references/IFRS%20and%20exercise%20of%20accountants%E2%80%99%20professional%20judgments%20-%20Insights%20and%20concerns%20from%20a%20german%20perspective.pdfhttp://official%20references/IFRS%20and%20exercise%20of%20accountants%E2%80%99%20professional%20judgments%20-%20Insights%20and%20concerns%20from%20a%20german%20perspective.pdfhttp://official%20references/Translation/Equivalence%20of%20IFRS%20across%20languages%20-%20Translation%20issues%20from%20english%20to%20german%20(APIRA-2010-198-Hellmann).pdfhttp://official%20references/Translation/Equivalence%20of%20IFRS%20across%20languages%20-%20Translation%20issues%20from%20english%20to%20german%20(APIRA-2010-198-Hellmann).pdfhttp://official%20references/Translation/Equivalence%20of%20IFRS%20across%20languages%20-%20Translation%20issues%20from%20english%20to%20german%20(APIRA-2010-198-Hellmann).pdf


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Opportunities for the survival of the differences: 3-p.235/3

Source:

Cultural Relevance of Western Accounting Systems to Developing Countries, NABIL

BAYDOUN AND ROGER WILLE'IT

Accounting professionalism a cultural perspective of developing countries, Saeed Askary

(Deakin University, Burwood, Victoria, Australia)

Accounting Measurement in the Religious Perspective - Conservatism or Optimism, Saeed

Askary

5, p. 30-

31

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