Accounting Theory

Is account statement culturally , socially and governmentally in contrastive or does it display cultural , social and /or political biases ? piss reasons to support your answerCultural statusCulture is an important environmental factor influencing account practices and instruction control systems . The effects of cultural differences while interest story principles can be seen among countries as well as plaques . This is maven of the reasons why it is very difficult to follow convertible principles uniformly through out the world . Cross-cultural studies counsel that masses from different cultures take for different preferences and interpretation for explanation practices . opposite error patterns atomic number 18 found in companies with different management practices and accounting control systemsHofstede set five propertys along which subject argona cultures could be comp atomic number 18d and contrasted : individualism versus collectivism , orotund versus undersize military force outstrip , strong versus timid uncertainty avoidance maleness versus femininity , and short-term versus long-run orientation . These cultural dimensions waste served as a pedestal for a name of cross-cultural studies in accounting with meaningful cross-cultural differences found in different contexts . According to Hofstede an organization s control systems reflect the canonic cultural norms and are well related to power surpass . On the other founder , the individualism versus collectivism dimension relates to management integrity , force-out turnover , and other entire risks contributing to accounting errors . grayness also suggests that these cardinal dimensions are closely linked to the accounting subcultures , particularly professionalism and uniformity . These two accounting subcult ures are bear on with the authority and enf! orcement of accounting systems which in turn will touch the quality of accounting data thitherfore , power excel and individualism are identified as the two around relevant cultural dimensions that have implications for factors affecting accounting errorsPower surpass can be delimitate as the extent to which the poor powerful members of institutions and organizations expect and sham that power is distributed unequally . There are a number of key differences mingled with jumbo and small power remoteness organizations .

Specifically , in a large power distance organization , power is typically change in a few hands . Employees or workers are relatively nescient and there is a w ide earnings range between the top and the bottom of the organization . In contrast , in a small power distance organization , power structure in organization is schematic for administrative convenience decentalisation is fairly popular and subordinates run away to be highly qualified . Subordinates are to be consulted and superiors are easily accessibleZarzeski used Hofstede s dimensions to inform corporate disclosure Entities with world(prenominal) pro are less secretive as compared to smaller ones . Perera explained the differences between accounting principles followed in European and Anglo-American countries . Hamid Craig and Clarke explained how religion plays a role in differentiating accounting principles by comparing Islamic and western accounting practicesThus , accounting practices vary with culture and thence makes harmonization very difficultSocial perspective The social perspective of accounting is reflected in the annual quarterly results of various organiz ations . Financial statements are rarely neutral . A ! company s top managers are evaluated on the numbers in them . But those same managers are also responsible for preparing the statements . except , in...If you want to get a full essay, order it on our website: OrderEssay.net

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