1 3101AFE Accounting Theory and Practice WORKSHOP 5 Deegan Topic 4: International accounting ...

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1

3101AFE Accounting Theory and Practice

WORKSHOP 5

Deegan Topic 4: International accounting

QUESTION 1:
Does the adoption of IFRS by different countries necessarily mean that the accounting procedures
and practices they adopt will be consistent and comparable internationally?

QUESTION 2:
After considering the Hofstede-Gray model,
iefly explain the hypothesised link between society
values, accounting values and accounting practice.

QUESTION 3:
It is often argued that the accounting standards of the FASB are rule-based, whereas the
accounting standards issued by the IASB are principles-based. Rules-based standards by their
nature can be quite complex, particularly if they seek to cover as many situations as possible. Do
you think it would be easier to circumvent the requirements of rules-based or principles-based
accounting standards?

QUESTION 4:
Ball (2006, p.22) provides the following statement:

In the presence of local political and economic factors that exert substantial influence on local
financial reporting practice, and in the absence of an effective worldwide enforcement mechanism,
the very meaning of IFRS adoption and the implications of adoption are far from clear. In the
enthusiasm of the cu
ent moment, the IFRS ‘
and name’ cu
ently is riding high and IFRS
adoption is being perceived as a signal of quality. I am not sure how long that perception will last.

Provide an argument as to whether you are inclined to agree or disagree with Ball’s scepticism
about the future of ‘value’ associated with em
acing IFRS.

qfile_636796276412880918_123609_1.pdf

Kanika · Accepted Answer

1
2
International Accounting
International Accounting
1. Different countries have their own different cultures because of which the accounting practices of the different nations are more or less different. We know that the qualitative characteristics like timeliness, comparability, understand ability and verifiability are altogether same in the IFRS but because of the cultural differences the use of the IFRS accounting practices worldwide cannot be necessarily standardize. The other reasons for this include:
· Different nations have different political and economic forces which result in inconsistent accounting practices.
· The difference in the level of expertise in the different countries can also be a reason for the same.
· Taxation rules are also different in different nations. In most of the countries accounting choices which are tax-driven will flow through to the financial statements which are compiled pursuant to IFRS.
(Words: 132)
2. In a particular society, all the members collectively held some system values which are represented as the Society values which in turn have effect on the behavior of the individual. 
On the other side values of the particular subculture of the said society as known as accounting where different subcultures in that particular society have some of the common characteristics. 
As per the Gray(1988) it is required to have proper identification mechanism as per which the values at society level have link with the values at subcultural level,

1 3101AFE Accounting Theory and Practice WORKSHOP 5 Deegan Topic 4: International accounting QUESTION 1: Does the adoption of IFRS by different countries necessarily mean that the accounting...

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