Culture, language, and accounting reform: a new perspective on IPSAS implementation

Abstract

Purpose This study aims to explore the role that culture and language play in the implementation of International Public Sector Accounting Standards (IPSAS). Design/methodology/approach The Hofstede–Gray and Huerta et al. (2013) models were used to collect data on language and accounting culture. Paired-sample t-test, regression and factor analyses were conducted on data from a sample of 101 respondents. This study also used ordinary least squares to test hypotheses. Findings The cultural dimensions of professionalism, secrecy and uniformity significantly influence the implementation of IPSAS. Furthermore, this study finds a significant link between culture, language and IPSAS implementation, which underlines the need for careful consideration of International Public Sector Accounting Standards Board policies in the promotion of IPSAS internationally. Research limitations/implications While this study is limited to its research method, using secondary data would have been challenging given the setting and accessibility issues. This study overcomes this problem by using a self-administered questionnaire. Prior studies confirm the reliability of the constructs. Despite providing justifications for why the authors use judgemental sampling, the authors acknowledge the limitation of the technique in survey distribution. Furthermore, the findings cannot be read without caution, as the authors focused on one country. However, interactions between accounting practices and culture in one country may be transferred to other countries that share a common language and culture with Qatar. The authors believe future research in this area will complement the understanding of the determinants of IPSAS implementation should the study be replicated. Social implications Policymakers, standard setters and regulators should promote and enforce an integrated approach that reflects the need for accountants and auditors to be conscious of the effects of culture and language, given the likelihood of widespread IPSAS adoption. Originality/value This study offers insight into the significance of culture and language in reforming public-sector accounting systems in developing nations and emerging economies.

Assessing the countries’ convergence to IPSAS from a cultural perspective

“…According to Biygautane et al (2017), more conservative countries are less likely to implement IPSAS. Given that countries with low IVR are more conservative (Hofstede and Bond, 1988;Hofstede et al, 2010), this result is aligned with the literature about IFRS adoption (Borker, 2013;Carvalho et al, 2015;El-Helaly et al, 2020;Gray, 1988;Laupe, 2018), despite a different finding on this matter by Abdulkarim et al (2022).…”

“…Countries with higher levels of IDV are more favorable to adopting IFRS to protect the interests of a specific group of stakeholders, such as investors and creditors (Carneiro and Nakao, 2014;Borker, 2013). Besides, countries with lower levels of IDV also value uniformity, which can be seen as a constraint to their IPSAS adoption (Abdulkarim et al, 2022). Conversely, as highly individualist countries are self-oriented (Hofstede, 2001), El-Helaly et al (2020) argued that they place more value on their local accounting standards, rather than IFRS, to protect their interests.…”

“…Also, IPSAS adoption is not preferred by nations that value uniformity, as it is with countries with higher levels of UAI (Abdulkarim et al, 2022). Given that the IPSAS adoption means a new accounting culture for the public sector in several countries, the hypothesis regarding UAI was defined as follows:…”

“…According to Borker (2013), countries with high LTO do not have a cultural profile favorable to IFRS adoption. Once more, considering the similarities between IFRS and IPSAS, and the latter representing a new culture for the public sector (Abdulkarim et al, 2022), the following hypothesis was defined:…”

Aprendendo com as Experiências Internacionais: Normas Contábeis Diferenciadas para Entidades do Setor Público

“…A partir dos elementos apontados, considera-se que o processo de harmonização às IPSAS pelos governos não representa apenas desafios de natureza contábil, mas, também, apresenta dificuldades relacionadas à realização de processos necessários para que essas mudanças sejam aplicadas corretamente (Abdulkarim, Umlai, & Al-Saudi, 2022;Jorge, Nogueira & Ribeiro, 2020;Lima & Lima, 2019).…”