Accounting, Culture, And Emerging Economies: IFRS In The BRIC Countries

Abstract

The culturally derived accounting orientations of four major emerging economies, Brazil, Russia, India and China, the BRIC countries, are examined based on the Geert Hofstede work on cultural dimensions (Hofstede, 1980) and the hypothetical derivation of related accounting values by S. J. Gray. (Gray, 1988) Keywords: IFRS in BRIC Countries; Accounting Standards in BRIC Countries INTRODUCTIONhe area of comparative international accounting has developed as a significant focus of accounting research and education since the 1980s. Much of this work consists of studies of the accounting systems of individual countries, with some regional and comparative studies. In the English speaking world, there have been studies of accounting systems and practices of the United States, the United Kingdom, Canada, Australia and New Zealand, both on an individual country basis, and as a related grouping. (Arnold & Collier, 2007) (Baker & Quick, 1998) (Billings & Capie, 2009) (Bloom & Naciri, 1989) (Lindsay, 1992) (Napier, 1995) There have also been studies of Western European countries, (Diem, 1929) (Emenyonu & Gray, 1992) (Boerstler, 2006) (Heidhues & Patel, 2011), the Central and East European countries (Patton & Zelenka, 1997) (Jermakowicz & Rinke, 1996) (McGee & Preobragenskaya, 2006) (Haldma, 2004), Russia and the Commonwealth of Independent States (CIS) (Horwitz, 1963) (Hellström, 2006) (Lebow & Tondkar, 1986) (Krylova, 2003), Asia-Pacific countries (Hooi, 2007) (Hwang, Staley, Chen, & Lan, 2008) (Sudarwan & Fogarty, 1996) (Williams & Tower, 1998) (Chow, G. K. Chau, & Gray, 1995) (Chow, Deng, & Ho, 2000) (Oguri, 2002), and, to a lesser extent, countries in the Middle East and Africa and Central and South America. (HassabElnaby & Mosebach, 2005) (Buys & Schutte, 2011) (Noravesh, Dilami, & Bazaz, 2007) (Lopes, 2006) During this period, the International Accounting Standards Committee (IASC) was formed in 1973, and begins to be taken more seriously. In 2000, its International Accounting Standards (IAS) were recognized by most of the world's major stock markets. In 2001 the IASC was renamed the International Accounting Standards Board (IASB) and its International Accounting Standards were renamed International Financial Reporting Standards (IFRS) to emphasize that the primary goal of accounting standards is to insure fair and accurate financial reporting by all entities. Growing interest in the adoption of IAS and IFRS led to new studies, both theoretical and empirical, on the accounting systems of developing and emerging economies. The introduction of studies of cultures in relationship to management and accounting orientations and practices , e.g., Hofstede, Gray, etc., has resulted in more than just individual descriptions of national accounting systems, but to truly comparative work based on a defined theoretical underpinning. IFRS issues, such as the importance of disclosure, transparency and accounting professionalism, as well as, the problems of harmonization and convergence of host country and IFRS practices in a...

Impacto total da implementação do IFRS no lucro e patrimônio líquido das empresas brasileiras

“…Por outro lado, contrariando essas críticas, Borker (2012aBorker ( , 2012bBorker ( , 2013, convalidou a hipótese dos accounting values de Gray na era do IFRS em vários países (inclusive o Brasil), tendo verificado que o trabalho de Gray (1988) foi citado em mais de 650 pesquisas.…”

Corporate Financial Reporting in the BRIC Economies: A Comparative International Analysis of Segment Disclosure Practices

“…The BRIC countries are often paired into two groups: Brazil/Russia and India/China. The former group is identified as large land mass countries with relatively low populations that are rich in natural resources and the latter as having two of the world's largest populations (Borker, 2012).…”

“…While the adoption/convergence with IFRS is a high priority for the BRIC countries due to their need for continued access to foreign capital (Borker, 2012), there exists some reluctance from individual countries' regulators À taxation issues being one of the reasons. In addition, differences in the legal systems, financing systems and culture of the BRIC countries may not be resolved by the adoption of IFRS.…”

“…As of 2014, there are 27 International Accounting Standards (IAS) and 13 International Financial Reporting Standards (IFRS), and 128 jurisdictions require or permit IFRS for their domestic listed companies (IASPlus, 2013). Given the widespread use of IFRS around the world, the adoption of, or convergence with, IFRS is a high priority for the BRIC countries looking for continued foreign investment to sustain their high economic growth (Borker, 2012). In addition, BRIC companies whose financial statements are prepared under IFRS (or domestic GAAP which are IFRS compliant) are likely to enjoy the benefits stemming from high-quality accounting standards.…”

An International Comparison of the Determinants and Financial Information Quality in XBRL Reporting Environment

“…Studies had shown there an influence of cultural towards accounting standards adaptability (Borker, 2012;Hashim, 2012;Young, 2013), use of technology (Connolly, 2011;Fang, Benamati, and Lederer, 2011;Leidner and Kayworth, 2006) and XBRL voluntary filing (Leidner and Kayworth, 2006;Chunhui Liu and Farrell, 2013). Gray (1988) had extend the Hofstede cultural theory in the context of accounting level for better understanding of the different values in accounting standard adoption.…”