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Affects of Culture on Accounting Standards in the Organisations of Canada and France

Table of Contents

Introduction 5
Some Definitions Of Culture 5
Cultural Studies 5
Cultural Influence And Accounting Harmonisation 7
Comparison of Canada and France accounting models 8
Conclusion 9
References 10

For example, don’t underestimate the impact of culture on friendly foundations. Before the
development of development and the crossing of hierarchical boundaries, culture was in the
space of useful and outdated research. This article explores whether culture influences the
relationship between global accounting practices and whether understanding social work in
accounting can help in understanding global accounting standards. These demos will be
presented using Anglo-American and European accounting models in Canada and France as
specific illustrations. While there are various obvious factors, financial and institutional,
general body of laws, liability laws, etc., that can affect accounting harmonisation, culture is
a critical limitation (Mazzi, et al., 2018).
Some Definitions Of Culture
There is no universally recognised value of culture. People view culture as a structure that
includes and determines the development of social organisations and social miracles. People
viewed culture as a formulation of standards, qualities and customs that reflect the attributes
of ordinary behaviour in a particular social community. People basically characterise this as a
matter of thoughts and qualities, the cumulative makeup of the brain. People described
culture as cumulative mental programming that recognises people from one collection or a

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group of people from another. He sees social contrasts on four different levels: images, saints,
customs, and qualities (Dewi, et al., 2018).
Culture can be seen from the definitions that culture is divided between people taking place
with assemblies or societies, formed at a fairly large distance and moderately stable. In the
field of accounting, characterised culture as those natural factors that decisively influence the
foundations of government accounting is a logical causal factor in the various rehearsals of
government accounting in different societies (Mazzi, et al., 2018).

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Cultural Studies
Cultural study is close to difficult to talk about culture without referencing Hofstede.
Hofstede directed the most complete investigation of how work environment esteems are
impacted by culture from 1967 to 1973, while working at IBM as a clinician. He dissected
information from more than 100,000 people from 40 nations. In 1980 he recognised four
particular differentiating sets of measurements of culture which have delighted in impressive
consideration (Sari, and Lubis, 2018).
(1) Power distance, showing proportion of relational force between individuals,
(2) Individualism versus cooperation showing proportion of individual independence among
people and aggregates,
(3) Vulnerability evasion showing nervousness level of society individuals towards the future
(4) Masculinity-distribution of jobs between genders. In 2007, he added a fifth measurement
that isn't excessively applicable for our review which is Long-Term Orientation LTO which
is related to tirelessness. His review was viewed as an impetus in global accounting research
which later accounting analysts embraced into the accounting setting. As indicated by
Fogarty his work has been referred to in 583 studies from 1981 to 1992 and this legitimises
its utilisation in accounting research (Mnif Sellami, and Gafsi, 2019).
Mnif Sellamy and Gafsey (2019) made basic assumptions about accounting using the social
characteristics developed by Hofstede to define attitudes towards accounting. He traced the
social impact of accounting in different countries from a cultural perspective. He found a way

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to link accounting relationships at the accounting subculture level with cultural
characteristics, giving them accounting value for thought;
1. Professionalism; which implies a tendency towards individual judgment and self-
government rather than prescriptive legal requirements and legal control. He associated
Hofstede's high autonomy, delicate avoidance of weakness, masculinity given the possibility
of confidence, and a small distance of power.
2. Uniformity; This demonstrates the trend towards uniformity in accounting practices across
associations, as opposed to the universality of the association's unique circumstances.
According to Hofstede, this reflects a social order with a high level of avoidance of weakness
and a huge power distance.
3. Conservatism: There is a tendency to be careful in judgment as it helps to adjust to future
weaknesses. This manifests itself in different ways depending on the more fun and dangerous
technique. This links strong weakness to avoidance, autonomy, and appreciation for
Hofstede's masculinity.
4. Secrecy; This is where information is passed between close managers and moneylenders,
as opposed to a more open, clear, and infinitely capable approach. This is due to social orders
that strictly avoid weakness and value power distance.
Culture considers two interrelated strategies for dividing social influences into accounting
chips, selecting a set of highly cultural characteristics or social variables at risk that should be
clearly linked to accounting practices, and testing any link between cultural characteristics
and unambiguous accounting practices. In his opinion, the practice or systems of accounting
in different countries depend on their social characteristics, which, accordingly, shape their
accounting methods. The relevance of Hofstede's design is given to accounting. Intellectuals
believe that his social rating in accounting leads to a deceptive dependence on friendly
records. Many groups of people portrayed his social research in world accounting research as
a partially blind perspective, as he relied on Hofstede's schema, not fully considering how his
research focuses on one relationship and therefore does not provide reliable information
about social potential benefits for the whole country (Sadaf et al., 2018).

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Some people similarly explore this in the contrast between culture and country. In addition to
the Encyclopedia of World Cultures in the Middle East, Areas of Human Relations files
cover 35 specific cultures in 14 countries. Moreover, Fine's reports are rejected. Throughout
his research, Gary acknowledges that culture undoubtedly influences those parts of the
accounting environment that are inherently cordial, and, moreover, reports that culture
influences the practice of openness more than it does valuation methods. Despite these
reviews, models have a couple of callings. As demonstrated by the Hofstede model, but
unambiguously (Haseeb et al., 2018).
Cultural Influence And Accounting Harmonisation
Cultural influences on the accounting environment have been the subject of accounting
studies and have been analysed by numerous researchers in Culture and the global accounting
systems. They have largely affirmed the obvious fact that culture influences accounting.
Likewise, people believe that each is a frame as a result of its particular climate. Accounting
is determined by the climate in which it operates. Moreover, even when describing this
practice in detail, their next report concluded that every nation that declares this practice is
influenced by culture, regardless of the existence of a standard. Many people realised that
cultural climate is an autonomous variable that can influence rehearsals for divulging money
because of valuable guidance. Violet 1983a viewed accounting as part of her culture (Wen et
al., 2018).
The accounting hypothesis is important to the character and is now part of the culture. If
people are Muslim, their characters are Islamic and their culture is Islamic. Hence, their
accounting hypothesis is Islamic. Based on the above, it can usefully be said that accounting
hypotheses and practices are the result of people's actions that are influenced by their beliefs.
Some of the cultural variables that affect accounting include language, religion, ethics,
values, mentality, laws, regulations, legislative issues, social associations, and innovation.
Now the question is, how does culture affect accounting? It is impossible to belittle the power
of culture (Haseeb et al., 2018). Most of the time, what you do is driven by belief, and
accounting is no exception. Moral judgment, the principle of respect, behaviour towards
something, a general body of laws, religion, or even warning are all hidden practices of
incredible power. Thus, it cannot be argued that the above factors affect accounting valuation
and therefore affect the accounting climate worldwide. The true model is Islamic culture,

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which does not provide the opportunity to acquire, unlike Western culture, which is aimed at
receiving (Adnan et al., 2018).
This cultural influence has shown that it is difficult to reconcile opinions. A significant
harmonisation effort is the creation of the International Accounting Standards Board (IASB),
overseen by the International Accounting Standards Committee (IASC), based on input from
experienced accounting bodies from renowned countries. Its goal is to foster the development
of a set of global accounting standards that require the highest level, simplicity and
equivalence in the summary of budgets by country. In any case, his efforts were thwarted by
restrictions such as culture, training, taxation, political environment and financial
improvements in many countries (Flower, and Ebbers, 2018).
Comparison of Canada and France accounting models
Hofstede's cultural dimensions applied in accounting would be used to group Canada and
France. Canada and France use different accounting systems and operate under financial
terms that include many different components that can affect accounting. There is an Anglo-
American accounting and analysis system in Canada, so adaptability and impeccable skills
are better. Her worldview and qualities protect the interests of investors. Interestingly, the
French accounting system, like most continental European countries, is based on a consensus
plan and structured solutions that meet the data needs of partners and have the benefits of
consistency and legal control (Flower, and Ebbers 2018).
Canada and France switched to International Financial Reporting Standards IFRS, referred to
as International Financial Reporting Standards, IFRS. Applying Gray's four accounting
estimates above, it is clear that Canada has the superior ability, versatility, positive reasoning,
and straightforwardness that have shaped the model of massive exchange of financial support
and corporate governance. Moreover, there is no link between store availability, given their
high autonomy, low vulnerability avoidance and record distance. France has stricter legal
regulations, consistency, conservatism and a higher level of aversion to weakness, which,
again, indicates a strong government influence on accounting. France has an organisational
model of corporate governance dominated by banks, government or families (Ameen et al.,

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Canada has a standard accounting system that combines accounting standards used to provide
instant financial information. State and standard laws have provided guidance on accounting
standards for the Canadian Institute of Certified Public Accountants (CICA). There is no
single place for records; rather, standards evolve and eventually become generally accepted
in practice, but with a significant degree of consistency, as evidenced by the CICA. Likewise,
accounting and administrative instructions are kept separate. The financial notes have been
prepared in accordance with accounting standards (Yung, and Root, 2019).
In France, the general similarity plan introduced by the public accounting authority has
influenced the practice of accounting. This accounting plan is usually prescriptive, step-by-
step and procedural. The cash register is a huge piece of the public domain that is managed
by authoritative or semi-administrative bodies (Ameen et al., 2018).
This essay shows how culture influences accounting standards and shows that this culture
undoubtedly shapes accounting standards in a particular country. Many countries place
incredible emphasis on their own accounting standards, given the cultural characteristics and
standards from which those standards were created. The importance of culture and its
importance to global accounting standards was mentioned in the studies of Hofstede and
Gray. Using Canada and France as test countries, our tests confirm the forgotten link between
culture and accounting. The essay also examines the attempts of the IASB to adapt
accounting around the world and what culture is developed to achieve its goals. While there
are various factors that influence government accounting standards, culture positively plays
an important role in the choice of government accounting standards. It is generally accepted
that culture and accounting will be scrutinised when a global decision is made.


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Ameen, A.M., Ahmed, M.F. and Abd Hafez, M.A., 2018. The Impact of Management
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