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

Kód výsledku v 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>

Výsledek na webu

<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

—

Jazyk výsledku

angličtina

Název v původním jazyce

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

Popis výsledku v původním jazyce

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.

Název v anglickém jazyce

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

Popis výsledku anglicky

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.

Druh

D - Stať ve sborníku

CEP obor

—

OECD FORD obor

50205 - Accounting

Projekt

—

Návaznosti

N - Vyzkumna aktivita podporovana z neverejnych zdroju

Rok uplatnění

2015

Kód důvěrnosti údajů

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

Název statě ve sborníku

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

ISBN

978-80-7454-482-8

ISSN

—

e-ISSN

—

Počet stran výsledku

7

Strana od-do

1226-1232

Název nakladatele

Tomas Bata University

Místo vydání

Zlín

Místo konání akce

Zlín

Datum konání akce

23. 4. 2015

Typ akce podle státní příslušnosti

EUR - Evropská akce

Kód UT WoS článku

000374107300098