The Effect of accounting education and national culture on accounting judgments

Research output: Chapter in Book/Report/Conference proceedingConference proceeding contribution

Abstract

Countries adopting International Financial Reporting Standards (IFRSs) need to educate and train their professional accountants so that they are able to interpret and apply IFRSs in a consistent manner. This study examines the effect of national culture and education on the judgments of Australian and Chinese final year undergraduate accounting students in Australia. It seeks to understand whether culture influences student interpretation and application of uncertainty expressions, which are used as recognition and disclosure thresholds in IFRSs. The results obtained on the cultural dimensions of Uncertainty Avoidance, Individualism, Power Distance, Masculinity and Long-term Orientation provide evidence that Chinese students exhibit stronger conservatism and secrecy when compared to Australian students. The consequent results of the study indicate that national culture has a significant effect on the judgments of accounting students when interpreting and applying selected IFRSs that contain uncertainty expressions. An important implication of the study is that regulators and standard setters involved in the international convergence of accounting standards need to pay greater attention to cultural factors that may cause a difference in the interpretation and application of IFRSs.
Original languageEnglish
Title of host publication2009 AFAANZ Conference proceedings
Place of PublicationAustralia
PublisherAccounting and Finance Association of Australia and New Zealand
Pages1-40
Number of pages40
Publication statusPublished - 2009
EventAccounting and Finance Association of Australia and New Zealand Conference (2009) - Adelaide
Duration: 5 Jul 20097 Jul 2009

Conference

ConferenceAccounting and Finance Association of Australia and New Zealand Conference (2009)
CityAdelaide
Period5/07/097/07/09

Keywords

  • Convergence
  • accounting standards
  • accounting students
  • education
  • culture
  • judgments

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  • Cite this

    Chand, P., Cummings, L., & Patel, C. (2009). The Effect of accounting education and national culture on accounting judgments. In 2009 AFAANZ Conference proceedings (pp. 1-40). Australia: Accounting and Finance Association of Australia and New Zealand.