The Effect of Culture on Accounting System’s in China
Author(s)
Thian Cheng Lim , Dan Zhao , Xiu Yun Lim , Riuyang Chai ,
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Abstract
This paper investigates the effect of cultural influences on the international practice of accounting. We critique the contemporary research methodologies used to test this theory and proposed our methodology. We proposed to perform an empirical test using China firms. The cultural dimensions of Uncertainty Avoidance, Individualism, Power Distance, Masculinity and Long term Orientation is compared between USA and China accountants to discover whether Chinese accountants will exhibit stronger conservatism and secrecy when compared to US counterparts. National culture has a significant effect on the judgments of accountant when interpreting and applying selected IFRSs that contain uncertainty expressions. The issue of cultural influence in explaining behaviour in social systems has been recognised for some time, however, its impact on accounting as a social system is a more recent field of study.
Keywords
Accounting convergence, uncertainty expressions, education, culture, accounting judgments
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