Globalisation, accounting and developing countries

Abstract

Accounting is an instrument and an object in globalisation but its impact and manifestation is not uniform across Northern developed countries and Southern developing countries (DCs). This paper reviews contributions on globalisation and its influence on accounting in DCs, and identifies important research gaps. It examines the role of accounting in changing development policies, from state capitalism through neo-liberal market-based to good-governance policies. It then considers specific accounting issues, namely the diffusion of International Accounting Standards (now International Financial Reporting Standards) and how they promote global neo-liberalism; the development of the accounting profession in DCs in the face of competition from Northern global accounting firms and professional associations; accounting issues in state-owned organisations, and privatised and multinational corporations; government accounting reforms and the resurrection of the state in DCs; social and environmental accounting issues; and the rise of non-governmental organisations and their accounting and accountability. The discussion and conclusions reflect on achievements to date and important areas requiring further development.

“Does your walk match your talk?” Analyzing IPSASs diffusion in developing and developed countries

“…Institutional pressures for the adoption of IPSASs and their implementation have drawn more critics in Africa as compared with other developing contexts (Hopper et al, 2017). Wynne (2013) states that more than 30 governments in Africa have attempted to adopt the Cash Basis of IPSAS in the last decade to cope with external pressures, but the standard's requirements have proved to be impractical in their specific contexts.…”

“…Although not to the same extent as studies of Western countries, research covering the efforts of developing countries to streamline their public sector accounting systems has increased in recent years (Adhikari and Mellemvik, 2010;Hopper et al, 2017). Particularly, international organisationsthe World Bank (WB) and the International Monetary Fund (IMF) -push ACC.A and IPSASs as being allegedly important to improve day-to-day accounting (Goddard et al, 2016;Harun et al, 2012).…”

“…Their adoption in developing countries is reckoned to be paramount to ensure sound governance, accountability and sustained economic growth (ACCA, 2017). More recently, however, challenges associated with adopting ACC.A and IPSASs in developing countries have been acknowledged (Bakre et al, 2017;Goddard et al, 2016;Hopper et al, 2017;Lassou, 2017), and their suitability has been questioned (Hepworth, 2017). This has led international organisations and donors to promote the Cash Basis IPSAS as an intermediate step to improve the quality of accounting information and financial reporting in these countries (Adhikari et al, 2015).…”

From totalitarianism to capitalism – the case of IFRS adoption in Vietnam

“…Examining 49 countries, Cieslewicz () found that IFRS is often modified to reflect underlying institutional distinctiveness of a nation. Accounting researchers have further focused on how this issue has played out in countries with developing economies (often called emerging markets), where high demand for foreign direct investment and aid from the World Bank have encouraged IFRS adoption (see Mir and Rahaman, ; Tyrrall et al ., ; Ezzamel and Xiao, ; Karampinis and Hevas, ; Albu and Albu, ; Andrews, ; Hopper et al ., ).…”

Participatory and incremental development in an African local government accounting reform

“…Development policies in Africa have veered from state socialism to neo‐liberalism, and currently around good governance (Hopper et al., ). A recurring finding is that (regardless of approach), when sound accounting and accountability systems are adopted, they often play a ceremonial role to gain legitimacy from citizens and external funders rather than aiding ministerial and parliamentary scrutiny, operational decision‐making, and accountability (Hopper, Tsamenyi, Uddin, & Wickramasinghe, ).…”