Why do accounting rules differ from country to country - Research Paper Example

Why do Accounting Rules differ from Country to Country? The writing of various information outlets have been used to measure global accounting variation. A sequence of research on accounting morality and reporting practices internationally have been produced. (Price Waterhouse international 34), the program enclosed various opinion about 233 of them of which were done in 38 different countries. The study showed that the difference in accounting rules from country to country occurred due to the following issues:The final research was done on the above measurements and the final result was that “Deviation”; which mean that irregularities could result to variations in many ventures.

“Nonexistence”: of certain regulations on acknowledgment or dimension resulted to difference in accounting rules from country to country.Factors that Shape Development of Accounting in a CountryCultureVarious cultural issues have been initiated into global accounting studies in that culture was described as a combined encoding of the mentality; showing itself in morals and external traditions: in signs, idols, and customs (Hofstede, 16). He came up with indices associating to four elements of general way of life for each nation studied.

The following were the elements used:(i) Doubt prevention: The level to which human beings feel endangered by doubtful conditions, whereby it is expressed in a call for requirement, stipulated instructions and expect ability.(ii) Manliness: Community males are self-confident, strong and apprehension with substance accomplishment, whereas females are mostly humble, affectionate and concerned in the value of living.(iii) Personality: Individualitistic communities comprise little attachments beyond those of the nuclear relatives, as in communalist societies human beings belong to able, interconnected in-groups.

ConclusionThe dimensions of cultural made Hofstede model to be used extensively in industrial-related studies among them were accounting. Therefore, cultural dimension is a very important factor in shaping accounting in various countries.Works CitedHofstede, Geert, Gert Jan Hofstede, and Michael Minkov. Cultures and organizations. New York: McGraw-Hill, 1997.Price Waterhouse International. Accounting principles and reporting practices: a survey in 46 countries. Price Waterhouse, 1973.