Attitudes towards Uniform Accounting: Cultural or Economic Phenomena?

Abstract

The existing literature suggests that uniformity versus flexibility is a key dimension of differentiation in cross-national financial reporting practices. However, the issue of what drives attitudes towards uniformity has not been explored. Drawing upon a variety of existing studies, this study explores the attitudes of "Big 6" auditors in 23 countries towards rules mandating a single treatment across 14 issues. The study finds that auditors are in favor of a single mandated treatment in the majority of cases and that support for such rules is affected by both culture and the importance of the domestic stock market to the country. These results hold true even after the influence of extant practice or the level of uniformity of current practice is controlled for. Relatively higher levels of uniformity in de facto financial reporting practices and relatively stronger support for increased uniformity were both found in many of those countries which are traditionally thought of as having more flexible financial accounting systems.

The influence of culture on accountants’ application of financial reporting rules

“…MacArthur (1996MacArthur ( , 1999 finds that comment letters submitted to the IASC by corporate managers and accounting lobby groups from different countries exhibit preferences for conservatism and secrecy consistent with Gray's hypotheses. Roberts and Salter (1999) find general support for Gray's uniformity proposition in that Hofstede's cultural values significantly influence accountants' attitudes towards the uniformity of accounting rules. Schultz and Lopez (2001) show that accountants from countries with higher uncertainty avoidance resolve warranty expense estimates more conservatively than accountants from countries with lower uncertainty avoidance, which is consistent with Gray.…”

Uma análise das diferenças em termos da cultura a partir do projeto de substituição da IAS 39: financial instruments - recognition and measurement

“…Da análise efetuada, tornou-se necessário excluir a única resposta proveniente de Luxemburgo, à semelhança do procedimento adotado por Roberts e Salter (1999), uma vez que não foi possível identificar a classificação do país nos referidos estudos. Após tal exclusão, a população final fixou-se em 200 cartas.…”

The relation between national cultural dimensions and tax evasion

“…"Roberts and Salter (1999) renameHofstede's (1980) masculinity dimension "achievement orientation," which is a more accurate description of this cultural dimension.…”