Next, the process of setting IFRS as the international accounting standard is restricted by the environment, regulation and culture of the country. Depending on its region, every country practices its own culture which eventually build the society’s behaviour. Nobes and Parker (2012, page 29) note that:
“Culture in any country contains the most basic values that an individual may hold. It affects the way that individuals would like their society to be structured and how they interact with its substructure. Accounting may be seen as one of those substructures.”
The writers also refer to Hofstede’s theory (1984. Page 83, 84) in defining and scoring the basic dimensions of culture. There are four basic dimensions of culture which are the individualism versus collectivism, large versus small power distance, strong versus weak uncertainty avoidance and masculinity versus femininity. This paper will focus on the strong versus weak …show more content…
The statements above show a clear perspective that conceptual framework is beneficial as a guideline in the setting the international accounting standards. Although there are many obstacles arise along the operation of harmonising the international accounting standards, people should hold a positive view and confidence on the efforts in eliminating all the barrier. When the global standardisation is achieved, the companies can exploit the benefits of cost reduction of reporting in different reports and establish the easier way for international trading. After all, the modern economy nowadays recognises accounting as an essential infrastructural element in the business sector and crucial for finance, thus as the accounting services are delivered in an efficient procedures, it can enhance the efficiency of the rest of the economy (White,
“Culture in any country contains the most basic values that an individual may hold. It affects the way that individuals would like their society to be structured and how they interact with its substructure. Accounting may be seen as one of those substructures.”
The writers also refer to Hofstede’s theory (1984. Page 83, 84) in defining and scoring the basic dimensions of culture. There are four basic dimensions of culture which are the individualism versus collectivism, large versus small power distance, strong versus weak uncertainty avoidance and masculinity versus femininity. This paper will focus on the strong versus weak …show more content…
The statements above show a clear perspective that conceptual framework is beneficial as a guideline in the setting the international accounting standards. Although there are many obstacles arise along the operation of harmonising the international accounting standards, people should hold a positive view and confidence on the efforts in eliminating all the barrier. When the global standardisation is achieved, the companies can exploit the benefits of cost reduction of reporting in different reports and establish the easier way for international trading. After all, the modern economy nowadays recognises accounting as an essential infrastructural element in the business sector and crucial for finance, thus as the accounting services are delivered in an efficient procedures, it can enhance the efficiency of the rest of the economy (White,