Question 2 – International Accounting (20 marks) Steven Gray found evidence that cultural influences contribute to differences in professional judgment. His paper, “Towards a Theory of Cultural Influence on the Development of Accounting Systems Internationally” published in Abacus in 1988 describes his findings. You read this paper during the course. Required
a) Explain how THREE environmental, cultural and religious factors could lead to diversity (lack of uniformity) of international accounting practice. (10 marks)
b) What are the key findings of the above-mentioned research? (10 marks) Total – 20 marks
Question 2 – International Accounting (20 marks) Gary Braun and Ramon Rodrigues examined 42 countries for evidence that Gray’s (1988) accounting values can be used to explain the level of adoption of IFRS over local GAAP in a country. This was described in their paper, “Using Gray’s (1988) accounting values to explain differing levels of implementation of IFRS” published in the International Journal of Accounting and Financial Reporting in 2014. You read this paper during the course. Required
a) Explain how THREE environmental, cultural and religious factors could lead to diversity (lack of uniformity) of international accounting practice. (10 marks)
b) What are the key findings of the above-mentioned research? (10 marks) Total – 20 marks
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