The effects of ethnic culture and organizational culture on judgments of professional accountants

This study extends prior cross-cultural research by examining the effects of ethnic culture and organizational culture (Big 4 and non-Big 4 accounting firm affiliations) on the judgments of accountants in Fiji. The study also examines how interaction between ethnic culture and organizational culture influences the judgments of accountants. It examines the extent and the cause of differences between the judgments of Ethnic Fijian and Indo-Fijian accountants when interpreting and applying selected International Financial Reporting Standards (IFRSs). Consistent with their ethnic cultural values, the results show that Indo-Fijian accountants are generally more conservative in their judgments than their Ethnic Fijian counterparts. This study provides empirical evidence to support the view that both ethnic culture and organizational culture have a significant effect on the manner in which accountants within a country interpret uncertainty expressions contained in the IFRSs. The results also show that organizational culture has a greater effect on the judgments of accountants than ethnic culture. The results of this study provide important insights into the factors affecting the judgments of accountants within a country and raise interesting theoretical issues.0 page(s

The Effect of Ethnic Culture on Judgments of Professional Accountants in Fiji

3 page(s

The effects of ethnic culture and organizational culture on judgments of accountants

This study extends prior cross-cultural research by examining the effects of ethnic culture and organizational culture (Big 4 and non-Big 4 accounting firm affiliations) on the judgments of accountants in Fiji. The study also examines how interaction between ethnic culture and organizational culture influences the judgments of accountants. It examines the extent and the cause of differences between the judgments of Ethnic Fijian and Indo-Fijian accountants when interpreting and applying selected International Financial Reporting Standards (IFRSs). Consistent with their ethnic cultural values, the results show that Indo-Fijian accountants are generally more conservative in their judgments than their Ethnic Fijian counterparts. This study provides empirical evidence to support the view that both ethnic culture and organizational culture have a significant effect on the manner in which accountants within a country interpret uncertainty expressions contained in the IFRSs. The results also show that organizational culture has a greater effect on the judgments of accountants than ethnic culture. The results of this study provide important insights into the factors affecting the judgments of accountants within a country and raise interesting theoretical issues.9 page(s

International Accounting Standards Board's 'stable platform' was never stable : impact on Australian Accounting Standards Board

29 page(s

Impetus to the success of harmonization : the case of South Pacific Island nations

Several influential actors and regulators in the standard-setting arena have argued in support of international accounting standards as a basis for bringing consistency to financial statements across nations. The need for harmonization is apparent and the forces pushing for harmonization are irresistible, but it can only become a reality as a result of commitment and concerted effort by the regulators, standard setters, financiers, business community, and most importantly, the accountancy profession. Based on a critical perspective, an alternative rationale has been advanced in this paper, which is premised on identifying the impetus to the success of the process of harmonization, identifying the factors which a country should consider before an attempt is made to adopt/adapt the international accounting standard (IASs). In doing so, the study critically evaluates whether the developing countries do have the necessary resources, skills and appropriate reference points in the capital and other markets to harmonize accounting practices. This paper, therefore, seeks to explain what is needed to adopt/adapt the IASs, rather than considering the relevance/irrelevance of these standards, which other studies have done. To achieve success in the harmonization process this paper has provided five strategic factors (professional expertise, education and training, legal backing, the proportion of MNCs and local companies, and adoption of IASs with amendments) a country can use.18 page(s

Implications of the global trend towards convergence of financial reporting standards: a comparative study of Australia and Fiji

Thesis (PhD) -- Macquarie University, Division of Economic and Financial Studies, Dept. of Economics, 2008.Bibliography: p. 213-233.Overview of the thesis -- Paper 1: International Convergence of Financial Reporting Standards: evidence from the South Pacific Region -- Paper 2: Accounting judgment and decision making research: evaluation of publications in top-tier accounting journals (1971-2005) -- Paper 3: Judgments based on interpretation of 'new' and 'complex' International Financial Reporting Standards within a country: evidence from Fiji -- Paper 4: Cultural and non-cultural factors affecting judgments of professional accountants: a comparative study of Australia and Fiji -- Concluding remarks.This thesis examines how different countries adopt International Financial Reporting Standards (IFRSs). In particular, it examines whether IFRSs are interpreted and applied in a consistent manner within the South Pacific region. It questions the implicit assumption that accounting convergence will automatically lead to comparability in financial reporting. Adopting a holistic approach, this thesis considers both the de jure and de facto aspects of comparability in financial reporting. Prior studies have provided evidence that de jure consistency may not necessarily result in de facto consistency in the application of accounting standards across countries leading to international comparability of financial statements. -- The aim of this study is to empirically examine the implication of the trend towards international convergence of financial reporting standards where countries differ significantly in terms of culture, size, structure of the underlying economies, and the related experience of accountants in exercising professional judgments. To address this issue, this study has the following objectives: (1) to discuss the accounting environment in the South Pacific region and examine whether countries adopt and enforce IFRSs in a similar manner in the region; (2) to evaluate the characteristics and significance of prior accounting judgment and decision making studies; (3) to examine whether there are differences in judgments of professional accountants within a country when interpreting and applying IFRSs; and (4) to examine the extent and the cause of differences in judgments between professional accountants across countries when interpreting and applying IFRSs. Four projects were undertaken to achieve these objectives. -- This study provides insights into the factors that may be acting as constraints on achieving the objectives of accounting convergence.Mode of access: World Wide Webx, 273 p. il

Accounting judgment and decision making research in top-tier accounting journals (1971-2005)

There have been several audit monographs and reviews published on audit judgment and decision making research. These monographs/reviews have strengthened this strand of research by providing insights and suggesting avenues for future research. Though of equal importance, no such comprehensive reviews have been published so far for the research undertaken in the domain of accounting judgment. A review of the accounting judgment and decision making research published during 1971-2005 in the five top-tier accounting journals is reported in this study. This paper adds to the extant literature on accounting judgment and decision making in the following four ways. First, it describes the characteristics and significance of these papers and suggests avenues for future research. Second, it reviews and evaluates the theoretical and methodological strengths and weaknesses of these studies. Third, the thematic and methodological review of accounting judgment and decision making research presented in this paper may be useful to improve the research method, theory development and hypotheses formulation stages of future studies. Finally, the analysis presented in this study may also provide the necessary impetus to strengthen this strand of research in future.23 page(s

Convergence of accounting standards in the South Pacific Island nations : the case of Fiji

This study examines the relevance of the International Financial Reporting Standards (IFRSs) to emerging economies. Utilising the historical and institutional framework, it analyses the relevance ofIFRSs to an emerging economy - Fiji - by identifying the specific needs for accounting information in the domestic economy. The paper demonstrates that the needs and the nature of the social and economic systems of developed countries that are behind the formulation of the IFRSs are significantly different from those in Fiji. Since IFRSs are demonstrably designed primarily to suit the needs of developed countries, the relevance of IFRSs to emerging economies is in serious doubt. The context for the evolution of accounting in an emerging economy such as Fiji is different from that in developed countries. To supplement the evolution of such an accounting practice the paper identifies issues and recommendations that are associated with gaps or weaknesses in accounting and auditing arrangements in emerging economies22 page(s

The Australian experience : adoption of international financial reporting standards

4 page(s

Factors affecting judgments of professional accountants : a comparative study of Australia and Fiji

This study extends prior cross-cultural research by examining the effects of both cultural and non-cultural variables on judgments of professional accountants. By including a wider spectrum of variables than has been considered individually by prior researchers, the study may provide a better explanation of the factors causing differences in the judgments of professional accountants. It examines the extent and the cause of differences in judgments between professional accountants in Australia and Fiji when interpreting and applying selected International Financial Reporting Standards (IFRSs) which contain uncertainty expressions. It is expected that the level of conservatism shared by accountants in a country will affect their interpretation of uncertainty expressions used to establish the threshold for recognition of various accounting elements. The results obtained on the cultural dimensions of Uncertainty Avoidance, Individualism, Masculinity and Long-term Orientation provided conclusive evidence that Fijian accountants exhibit stronger conservatism when compared to Australian accountants. This study provides empirical evidence to support the view that national culture has a significant effect on the manner in which professional accountants in a country interpret uncertainty expressions contained in the IFRSs. The results also provide strong support for the argument that national culture and organizational culture (big 4 and non–big 4 firm affiliation) interact to influence the judgments of professional accountants. Additional analyses carried out to identify the effects of other non–cultural factors on judgments of professional accountants in Australia and Fiji show that both the professional accountant’s level of familiarity with IFRSs and their perceived level of complexity in each of the three scenarios used in this study have a significant effect on their judgments. An important implication of this study is that both cultural and non-cultural factors impact on the judgments of professional accountants.48 page(s