Major Question: Gray (1988) applied the Hofstede’s model to identify the four accounting values arising directly from prevailing social values. However, most of the accounting researchers agreed that the impact of culture on financial reporting is vague and potential misleading (Sawani, 2009). Apparently, Gray never placed into an operation the hypotheses or conducted empirical tests to support the framework (Finch, 2006). And since Gray left his framework to the accounting researches, there is a great opportunity to prove or test its validity. As the major question in the study, how cultural factors (as preferred by Gray (1988) as accounting values) affect accounting practice or manner of accountants in application of IFRS standards in Egypt?
Minor Question: What is the most suitable accounting standard setter (government body or profession accounting body) as perceived by the Egyptian accountants?
Hypotheses:
Gray argued that the behavior or the culture and economy of one nation should according to his framework. Therefore, Egypt as a socialist and developing country should portray in statutory control, uniformity, conservatism, and secrecy (Dahawy & Conover, 2007). Therefore:
H1: Egyptian accountants are more likely to value statutory control
Is there any preference from Egyptian accountants to select other then mandated accounting methods in case other methods fit company situation better?
H2: Egyptian accountants are more likely to value uniformity
What influences application of particular accounting method or measurement practice?
H3: Egyptian accountants are more likely to value conservatism
What influences distribution of the certain types of accounting information to outsiders?
H4: Egyptian accountants are more likely to value secrecy
What are the evidences pertaining to the secrecy policy of the Egyptian organizations?
Methodology
The method that will use in the study is through the research survey and interview. The survey data can be effectively collected which are based on the questionnaires developed and validated by focus group of industry experts. The sample size of the participants is 50 and the mode of answering the questionnaire will be on Likert Scale. This is for the aim in determining the impact or influences of the accounting practice among the Egyptian accountants. In addition, this is a great opportunity to describe the perception, as well as the impression it gives towards their nature of work of the accountants regarding the IFRS and the hypothesis of Sydney J. Gray (1988). In the phase of the interview, the accounting bodies such as the accounting department head and government accounting manager were asked regarding the preferable accounting practice. This is the best time to draw the connection between the four hypotheses of Gray (1988) regarding the Egyptian accounting practices.
Statistical Method for Hypothesis Testing
The applied statistical method is T-test which gives an indication of the differences or separateness of the two sets of measurements. It is also used to check whether the set of measures are essentially different.
References:
Dahawy, K., & Conover, T., (2007) Accounting Disclosure in Companies Listed on the Egyptian Stock Exchange, Middle Eastern Finance and Economics [Online] Available at: http://www.eurojournals.com/mefe%201%20art1.pdf [Accessed 16 July 2010].
Finch, N., (2006)Towards an Understanding of Cultural Influence on the International Practice of Accounting, Journal of International Business and Cultural Studies [Online] Available at: http://www.aabri.com/manuscripts/09175.pdf [Accessed 16 July 2010].
Sawani, A., (2009) The Changing Accounting Environment: International Accounting Standards and US implementation, Journal of Finance and Accountancy [Online] Available at: http://www.aabri.com/manuscripts/09206.pdf [Accessed 16 July 2010]
Other Sources:
Gray, S.J. (1988) “Towards a Theory of Cultural Influence on the Development of Accounting Systems Internationally” ABCUS May: 1-15
Ramanna, K., & Sletten, E., (2009) Why do Countries Adopt International Financial Reporting Standards?, Harvard Business School [Online] Available at: http://areas.kenan-flagler.unc.edu/Accounting/Documents/RS_IFRS.pdf [Accessed 16 July 2010].
0 comments:
Post a Comment