...Chapter 4 – International Accounting Culture Culture is a broad concept that would be expected to impact on legal system, tax system, the way businesses are formed and financed and so on. In recent decades, it has also been used to try to explain international differences in accounting systems. Violet(1983) argued that accounting is a ‘socio-technological activity’ that involved interaction between both human and non-human resources. Violet claims that accounting cannot be considered culture-free. Hofstede(1980) has defined culture as ‘the collective programming of the mind which distinguishes the members of one human group from another.’ Gray argues that the value systems of accountants will be derived and related to societal values, Cultural dimension of • Individualism, • Power Distance, • Uncertainty Avoidance and • Masculinity The values of accounting subculture will in turn, it is believed, impact on the development of the respective accounting systems at the national level. Therefore, at this point we can perhaps start to question whether accounting system can be developed in a “one-size-fits-all perspective – an approach which in some respects, the IASC appears to have adopted. Individualism versus Collectivism Individualism stands for a preference for a loosely knit social framework in society wherein individuals are supposed to take care of themselves and their immediate families only. Collectivism stands for a preference for a tightly...
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...CONSERVATISM Key concepts 1) Hierarchy and organic society * The term ‘organic society’ refers to a belief, which became entrenched in traditional conservative thought in the latter part of the 19th century. * It was a reaction against the rise of liberal individualism. * It proposes that society is more than merely a collection of individuals, but it is a single entity. * We are connected to each other through our humanity and common membership of community. * Organic society is seen as a reality, which is superior to our own, individual interests. * The ideal organic society – where goals and aspirations of individuals coincide with the goals of the whole society. 1980s – Margaret Thatcher famously challenged this remarking that there “is no such thing as society”, implying that the goals of individuals are superior to those of society as a whole. * Traditional conservatives believe that there is a ‘natural’ order into which each individual fits. * It is normal and natural that society should be divided by a number of strata. * The very rigid feudal system had long since disappeared, but there remained a belief that some kind of class system was inevitable. * Hierarchy like this supports organic society in that it creates an order and stability, which the individualistic society lacks. * Different parts of the hierarchy have different roles that complement each other. * This implies inequality, but an ordered inequality, and one in which...
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...substantially more likely to maintain negative racial attitudes. The study also investigated whether white Americans are more likely than other racial groups to harbor racial prejudices and disapprove of Barack Obama. Results from this study indicated that racial resentment plays a significant role in contemporary politics. Data from between-subjects ANOVA and correlational analysis suggested that the Democratic Party and Republican Party are polarized in regards to racial issues. Moreover, conservative whites are the most likely racial group to hold racial prejudices against African-Americans. Finally, disapproval of President Obama is highly associated with high levels of negative racial stereotypes. Keywords: race, antipathy, conservatism, prejudices, Obama Is Racial Antipathy Increasing? The Polarizing Effect of Obama’s Presidency In 2008, Barack Obama became the first African-American to become President of the United States. His election marked a pivotal turning point in American politics. To millions, Obama’s election signaled the start of a post-racial America. The country was infused with euphoria as citizens from diverse backgrounds celebrated his historical victory. For a brief period, grievous injuries and acts of unkindness committed throughout America’s history were forgiven. Citizens who had constructed emotional barriers, in response to racial discrimination, now waved American flags proudly. Citizens...
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...Political culture is a mutual arrangement of qualities, convictions, and propensities for conduct with respect to government and legislative issues. Various societies may exist together in a general public, yet regularly one culture is predominant and those prevailing esteems convictions and propensities for conduct influence all individuals from society. The dominant political subculture that pertains to Texas is traditionalism. Traditionalist subculture appeals to the elite rule within a hierarchical society and the traditional moral values, which epitomizes the values of the 19th century of the Southerners who migrated to the rich cotton land of East Texas. Traditionalist strongly discourages government participation unless it supports the...
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...Chapter 2 Worldwide accounting diversity Chapter Outline I. Considerable differences exist across countries in the accounting treatment of many items. These differences can result in significantly different amounts being reported in the financial statements prepared by companies using different GAAP. II. A variety of factors influence a country’s accounting system. A. Legal system – in code law countries, accounting rules tend to be legislated; common law countries tend to have a non-legislative organization that develops accounting standards. B. Taxation – financial statements serve as the basis for taxation in many countries. In those countries with a close linkage between accounting and taxation, accounting practice tends to be more conservative so as to reduce the amount of income subject to taxation. C. Providers of financing – in those countries in which family members, banks, and the government are the major providers of business finance, there tends to be less demand for public accountability and information disclosure. In countries where shareholders are a major provider of financing, the demand for information made available outside the company becomes greater. D. Inflation – countries with chronic high inflation adopt accounting principles in which traditional historical cost accounting is abandoned in favor of inflation adjusted figures. E. Political and economic ties – through previous colonization, a British style of accounting...
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...shareholders ii. Tendency for management to focus on short-term performance iii. Different attitude of managers and shareholders towards risk f) Corporate governance structures, policies and relationships can help to overcome these three related agency problems iv. Independent board of directors v. Independent board chair vi. Independent board subcommittees such as audit, remuneration and nomination 4. Stakeholder theory g) Reject the only important relationship is shareholders and managers, but consider from a much broader perspectiveshareholder is only one part of the group h) Stakeholders include employees, creditors, suppliers and so on, and they all have impact on the corporation to some extent. i) Company can only achieve its goal with a full and detailed understanding of the relationships it holders with different group of stakeholders. 5. Agency theory vs....
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...Organization Impact Upon the Achieving of Goals Table of Contents Introduction 3 Universal Leadership in Multinational Companies 4 Interpersonal Acumen and Leadership Communication in MNCs 4 Various Dimensions of Societal Culture and Effective Leadership 5 Cross-Cultural Dimensions of Leadership Communication in Achieving Goals 9 Recognition of Cross-Cultural Leadership for Attaining Goals 9 Conclusion 10 References 12 Introduction Business scenario at present is changing. This change in business environment has been dealt from different aspects in the form of emerging markets, globalization, exponential rate of change, different competitors, new technologies and many such. In short, it is to be identified that all these aspects lead to development of the concept called multiculturalism. Multiculturalism surely affects multinational companies and ultimately people and business worldwide. Due to changing business environment considerable changes in leadership communication styles have also taken place to cope up with the dynamic market trends. There had been a significant change in management and control focus to that of alignment focus. Also, significant change has occurred in the communication styles as different modes of communication and system of close interaction between the management and the rest of the organization are being introduced. As an inevitable consequence, the culture in multinational companies has now shifted from one-culture thought process...
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...RMIT International University Vietnam Bachelor of Business (Accountancy) Assignment Cover Page | Subject Code: |ACCT2163 | | | | |Subject Name: |Accounting Theory | | | | |Location & Campus (SGS or HN) where you study: |RMIT Vietnam | |Title of Assignment: |Individual assignment | | | | |Student name: |Pham Thanh Huong | |Student Number: |S3275153 | | | | |Teachers Name: ...
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...Insight on WorldCom Scandal Table of Contents ABSTRACT 2 The importance of accounting conceptual framework 3 Historical Background 5 The Scandal – what happened 6 PENALTIES 7 How the scandal relates to accounting theory 8 RELATION TO POSITIVE ACCOUNTING THEORY 9 Conservatism Principle 9 Lack of Reliability 10 Lack of Relevance 11 Financial Misstatement 11 Conclusion 12 Bibliography 14 Insight on WorldCom Scandal ABSTRACT The scope of this paper deals with the WorldCom accounting scandal of the early 2000’s as it relates to elements of accounting theory. The discussion will cover the key reasons that contributed to the collapse of WorldCom. Specifically, this paper will look at: Executive compensation, Earnings Management, and Information Asymmetry. The authors will present arguments that clearly show how each of these three sub-topics played a pivotal role in the scandal. The reader will also see how these reasons are often inter-related, and often overlap each other, the enormity of which caused the company to fall like a stack of dominoes. In particular, information asymmetry was allowed to flourish as the WorldCom executives lavished themselves with huge compensation, all the while keeping the board of directors and investors out of the loop. A poor corporate government structure existed as the board was filled with inept and ineffective individuals who were powerless to stop the pilfering of profits. The end result of these actions...
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...the Clock" "Rock Around the Clock" is a rock and roll song written in 1952. And the version that we have just listened to was recorded by Bill Haley and His Comets in 1954. Compared with the first recording by another band and the various cover versions afterwards, Haley recording is considered as to be the best-known and most successful rendition of the song. When first released in the spring of 1954, it gained only limited sales. However, the song was popularized by its use in the social commentary film “Blackboard Jungle” in 1955 and became an anthem for the rebellious Fifties youth. Haley's recording of "Rock Around the Clock" is generally labeled to be the song that, more than any other, brought rock and roll into mainstream culture around the world. Popular music of the 1950s When the 1950s are mentioned, the first type of music to come to most people's minds is rock 'n roll. But music in the fifties was more than just rock 'n roll. The early 1950s era Pop music focusd on the song’s story and emotional delivery and was essentially a continuation of the crooner sound of the previous decade. Crooner sound refers to the sentimental songs, especially the love songs of the 1930s and 1940s It was not until the middle of the decade, Rock and roll entered the mainstream and became a major force in American record sales. And with a series of network television appearances and chart-topping records, popular artists such as Bill Haley, Elvis Presley, and Chuck Berry...
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...tracing their habitats in Israel. They are said to have descended from the Israelite society of Judah and Israel. The historical and Biblical beings such as Abraham, Joseph, Sarah, Mary, Jacob, Rebecca, Rachael and Leah among others are said to form the Jewish ancestry. Religion and culture are among the aspects that have been used in the definition of a Jew. In general, in the current situation, a Jew can be defined by three main groups of concern. These include, those people who have found their birth place as being the Jewish land and family without concern that they follow the Jewish traditions or not, those that do not have any connection to the Jewish land and traditions in prior times but have resolved to convert to Judaism and those individuals that can trace their background in the Jewish lineage but they do not exercise strict matrilineal decency. Judaism and Hellenistic culture The period when Greek culture was at its peak of spread is termed as the Hellenistic Period. The Jewish community formed a group that had this impact in place with a shift on some activities being carried out. Such included; social transformation that occurred amongst the Jewish societies in the world in language, culture and philosophy and the way of life. Hellenism began long time ago even during the reign of King Solomon when he resolved to employ Phoenician Architecture in association with the Syrian house plans in the construction of the temple in the pre-exilic times. King Ahaz as well had...
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...Public interest theory seeks to establish a method of understanding the interests of public groups based on a number of assumptions. Typically actions that are deemed in the public interest generally occur when governments seek to intervene in situations where market failure occurs. Market failure may arise due to monopolies, barriers to entry for new businesses, and information gaps. Public interest theory makes three assumptions. First, interest of consumers is translated into legislative action through operation of the internal marketplace. Secondly, agents will seek regulation on behalf of public interest. The third assumption being that government has no independent role to play in the development of regulation. In 2002 the Sarbanes-Oxley Act was created in America to enforce greater regulation and compliance for financial reporting and corporate governance. This Act was created in response to corporate scandals involving larger companies like Enron and Tyco International, and thus public interest theory suggests the government’s response was as a result of market failure due to inaccurate auditing and accounting procedures. The premise of private interest theory is that governmental bodies and political leaders use their power to coerce businesses through taxation, regulation, and subsidies. The Basic assertion of privation interest theory is the law of diminishing returns which exists between group size, and costs of using political process. A second assumption is government...
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...Ecologism: Core themes | Ecology | * Ecology developed as a distinct branch of biology through a growing recognition that plants and animals are sustained by self-regulating natural systems (i.e. ecosystem) composed of both living and non-living elements. All ecosystems tend towards a state of harmony or equilibrium through a system of state regulation. Biologists refer to this as homeostasis: Process where food and other resources are recycled and the population size of animals; insects and plants naturally adjust to the available food supply.Eco systems interact with other ecosystems.E.g. A lake may constitute an ecosystem, but it also needs to be fed fresh water from tributaries and receive warmth and energy from the sun. In turn, lakes provide water and food for species living along its shores. The natural world is therefore made up of a complex web of ecosystems – the largest of which is the global ecosystem: the “ecosphere” or “biosphere”.Ecologists argue that humankind currently faces the prospect of environmental disaster because of material wealth.Material wealth and consumption upsets the ‘balance of nature’ and endangered the ecosystems that make human life possible. * This is all a result of the growth in human population * The depletion of finite and irreplaceable resources such as: Coal, Oil, and Natural Gas * The eradication of tropical rain forests * The pollution of rivers, lakes and forests and air itselfEcologism presents a radically different...
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...Thesis Proposal Observing the Relation between Corporate Culture and Project Performance Background Projects are increasingly becoming vital means for corporate progress, however, research indicate that projects rarely fully succeed According to the 2004 PriceWaterhouseCoopers Survey of 10,640 projects valued at $7.2 billion, across a broad range of industries, large and small, only 2.5% of global businesses achieve 100% project success and over 50% of global business projects fail. Expects view supports the fact that most projects still overspend, fall off schedule and seldom meet stakeholder expectation. Improved tools, templates and methodologies fail to yield significant concurrent improvement in outcome. (Business Improvement architect 2008). In the face of shorter product life cycle there is limited time to implement project even in the light of higher stake holder expectation (Ivanenko 2009) Prior Research Perhaps in search of remedial prescriptions, literary works have been devoted to leadership in project management (Hersey and Blanchard 1993, Druker 1996, Maxwell 2005). Many of which propose situational leadership as paramount success ingredient for projects (Hersey and Blanchard 1969 (Kerzner 2003). After testing 153 across 28 countries, (Prabhakar 2008) concluded that the project manager is the key success factor in multicultural projects. However, the significance of organizational culture for project performance did not escape scientific attention. For...
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...CHAPTER 2 ENRIRONMENTAL INFLUENCE ON ACCOUNTING DEVELOPMENT 1 2.1 Introduction In international accounting research, environmental influence is the key to understanding one country’s accounting system. "To a large extent, accounting is a product of its environment. That is, it is shaped by, reflects, and reinforces particular characteristics unique to its national environment" (Radebaugh and Gray 1997). From the late 1960s, researchers in international accounting have tried to categorize countries according to a series of criteria, which have been developed on a deductive or conductive basis. These criteria tried to explain the reasons for accounting differences between countries; they aimed to describe and compare different systems with each other in an efficient way. There are several advantages to categorize and analyze the differences among countries: First, it promotes improved understanding of the complex realities of accounting practices, as well as the factors that shape a country’s accounting regulations; Second, it provides useful information for solving some of the important accounting problems that exist in the world. For example, it can help policymakers assess the prospects and problems of international harmonization; Third, it can assist in the training of accountants and auditors who operate internationally; And finally, it can enable a developing country to better understand the available and appropriate types of financial...
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