Effects of National Culture on Accounting Rule Application Essay

Effects of National Culture on Accounting Rule Application - Essay ExampleThe study will randomly select conscious Public Accountants from eight states to measure contingent liabilities and contingent assets recognition and disclosure decisions. The study will use an analysis of variance to comp are the group mean(a) to determine if there are any statistically significant differences between the variables. The proposed study has both a theoretical and practical implication. The study will attack to validate Tsakumis survey that applied Grays accounting theory with respect to conservatism and secrecy. From a practical application, the study may identify variables that govern an accountants disclosure decisions that could lead to improving information reporting between manager and other stakeholders. The cross-border dynamics of the global economy has consistently need businesses to conduct trade across international lines in order to remain or become competitive. In each host cou ntry, the authorities require international firms to submit financial statements that adhere to the host nations Generally Accepted Accounting Principles (GAAP). However, cultural differences have resulted in accountants exercising a breaker point of caution relative to adopting new accounting GAAP. The International Accounting Standards Board (IASB) has developed International Accounting Standards (IAS) and, in particular, International Financial Reporting Standards (IFRS). These standards are intended to produce uniformity in financial information reports for all multinational firms globally. In the U.S., the Security and Exchange Commission (SEC) has mandated that all publicly traded firms in the U. S. adopt the IAS by 2016.