The Interpretation of Accountins Standards in the New Ifrs Resime- a Cultural Contex

Abstract

It has been established by studies-empirical and otherwise that inconsistencies in interpretations exist due to politics and opposing practices in different cultures and value systems such as in Anglophonic and less developed Asian countries in 70's and 80's (now emerging economies). It is the authors' view that bigger and worse debacles will keep recurring because of: (a) inconsistency and differences in interpretation of English language and perceptions amongst Anglophonic countries and emerging economies, and (b) convenient interpretation and circumventing loopholes in accounting standards. Some of the misinterpretations of accounting standards are due to differences in culture and accounting values for want of 'best practice' norms within Anglophonic countries resulting in creative accounting as in Society? Générale (SG). SO is a recent (post 2005) story of flawed interpretations of International Accounting Standards (IASs) in the context of Hofstede and Gray's accounting and cultural framework.