The importance of culture as a factor underpinning accounting national rules: Consequences for IFRS

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F25940082%3A_____%2F15%3AN0000010" target="_blank" >RIV/25940082:_____/15:N0000010 - isvavai.cz</a>

Result on the web

<a href="http://www.ufu.utb.cz/konference/sbornik2015.pdf" target="_blank" >http://www.ufu.utb.cz/konference/sbornik2015.pdf</a>

DOI - Digital Object Identifier

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Result language

angličtina

Original language name

The importance of culture as a factor underpinning accounting national rules: Consequences for IFRS

Original language description

This paper discusses the importance of Culture and of the Social Environment as a factor underpinning Accounting Rules at a national level. The aim is to highlight the "embeddedness" of Accounting. Accounting Rules are not devised in a vacuum but are often introduced keeping the characteristics of the local economic environment into high account. These particular characteristics, in turn, reflect also cultural patterns which are specific in certain national societies. As an example, the study considers the economic and cultural reasons underpinning the importance of the Vorsicht (roughly translated as Prudence) principle in the German Accounting system and the correspondent different approach to Prudence in the Anglo-Saxon Accounting settings. As a consequence of the link existing between Culture and Accounting Rules, devising International Accounting Standards has been even trickier, because it is not straightforward to devise rules which could be suitable to countries characterized by different cultural environments and where economic systems are regulated in a different way. The need to set compromises is often one of the reasons why IAS/IFRS are sometimes providing ambiguous guidance or allow companies the discretion to choose among alternative options which would result in quite different figures accounting for the same element. This, unfortunately, may undermine the comparability of statements issued respecting the same rules but is a probably unavoidable side-effect of the internalization of Accounting Standards.

Czech name

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Czech description

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Type

D - Article in proceedings

CEP classification

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OECD FORD branch

50205 - Accounting

Project

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Continuities

N - Vyzkumna aktivita podporovana z neverejnych zdroju

Publication year

2015

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Article name in the collection

Proceedings of the 7th International Scientific Conference: Finance and Performance of Firms in Science, Education and Practice

ISBN

978-80-7454-482-8

ISSN

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e-ISSN

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Number of pages

7

Pages from-to

1226-1232

Publisher name

Tomas Bata University

Place of publication

Zlín

Event location

Zlín

Event date

Apr 23, 2015

Type of event by nationality

EUR - Evropská akce

UT code for WoS article

000374107300098