Different adoption versions of International Financial Reporting Standards (IFRS) in the light of different cultural backgrounds

1. Introduction IFRS (1 page) 1.1 Development of IFRS 1.2 Reasons for the (voluntary) adoption

(1; abstract (before p.1)

2. Adopted versions of IFRS (2 pages) 2.1 Significant differences in certain countries (Germany, England, China/Japan) 2.2 Differences /versions 3 p. 236/4; 3. Causes of the different adopted versions (7 page) 3.1 Objective factors: (1 p) (not cultutal but it backs up the potential differences caused by cultural backgrounds): IFRSs backing of/approbation of differences application by overt options in IFRS: 3-p.237-238/5-6 cover options, vague criteria, 3-p-239/7 3.2 cultural factors 4. Grays framework based on hofstede 4, 5 (Literature review) 4.1 Different dimensions: language, education, religion,.. 5 p. 26ff.

4.2 Different interpretation and application with regard to cultural differences

4, p. 254

Coservatism and Secrecy We use Gray's [Gray, S.J. (1988). Towards a theory of cultural influence on the development of accounting systems internationally. Abacus, 24 (1), 115.] theory of the influence of culture on accounting to develop hypotheses about the effect the interaction of the accounting values of conservatism and secrecy and the context in which probability expressions are used in accounting standards will have on accountants' interpretations of those expressions. Specifically, we expect accountants in a high conservatism country to assign a higher (lower) numerical probability to verbal probability expressions that determine the threshold for the recognition of items that increase (decrease) income than accountants in a low conservatism country (4, abstract)

4, p. 240/4

4, p. 251/5

4, p. 246/6

(4, p.241/6 ff.)

(4, p.244/25)

Two major accounting values are influences by cultural differences are

Conservatism Secrecy

Examples of different interpretation of Probability In Angla and Latin (The influence of conservatism and secrecy on the interpretation of verbal probability expressions in the Anglo and Latin cultural areas) p. in Germany, England and China/Japan Hofstedes method applied for the interpretation of cultural differences Uncertainty avoidance Individualism Achievement orientation Power distance

Consequence: different perception leads to different translation 4.3 Incomparability with regard to translation Different translation: 3-p.237/5; 3-p.242/10; Language n translation in accounting reasarch (p.4): Official references\Translation\Equivalence of IFRS across languages - Translation issues from english to german (APIRA-2010-198-Hellmann).pdf (auch in German) Official references\IFRS and exercise of accountants professional judgments - Insights and concerns from a german perspective.pdf

Translation of Probability in Germany, Spanish, French and China/Japan Translation of remote in Germany, Spanish, French and China/Japan 5. Avoidance of inconsistent interpretation and application (1 page) Self-cultural awareness and awareness of other cultures in the light of cultural accounting behaviors

5, p. 3031

Opportunities for the survival of the differences: 3-p.235/3

Source:

Cultural Relevance of Western Accounting Systems to Developing Countries, NABIL BAYDOUN AND ROGER WILLE'IT Accounting professionalism a cultural perspective of developing countries, Saeed Askary (Deakin University, Burwood, Victoria, Australia) Accounting Measurement in the Religious Perspective - Conservatism or Optimism, Saeed Askary