The Cultural Shaping of Accounting

The Cultural Shaping of Accounting

The Cultural Shaping of Accounting

The Cultural Shaping of Accounting

Synopsis

An important but usually overlooked variable that affects the process and product of accounting is culture. Consensus on what constitutes proper accounting methods and behavior varies among countries, and it is this cultural relativism and its impacts that Riahi-Belkaoui explores here. His purpose is to elaborate on the nature of cultural relativism in accounting and in the interpretation of accounting data. He thus shows the way culture determines accounting judgments, and explains the intercultural differences in the perception of accounting concepts, and in the field's self-regulation internationally. His point is that accounting is actually a cultural rather than a technical process, and that professionals as well as academics should be aware of this. A challenging, useful discussion for teachers, graduate students, and accounting practitioners, particularly in international settings.

Excerpt

Regulation is essential to both the accounting discipline and the accounting profession. It allows for an orderly organization as well as the legitimization of the discipline and the profession. However, regulation of both the accounting discipline and profession differ among countries. This chapter examines specifically the differences in the professional self-regulation among countries and uses a cultural thesis to explain these differences.

Accounting regulation in the United States

Theories of Regulation

Regulation is generally assumed to be acquired by a given industry and is designed and operated primarily for its benefit. There are two major categories of theories of regulation of a given industry: (1) public-interest theories and (2) interest-group or capture theories.

The public-interest theories of regulation maintain that regulation is supplied in response to the demand of the public for the correction of inefficient or inequitable market prices. They are instituted primarily for the protection and benefit of the general public.

The interest-group or capture theories of regulation maintain that regulation is supplied in response to the demands of special-interest groups in order to maximize the income of their members. the main versions of . . .

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