COLLEGE OF ADMINISTRATIVE & FINANCIAL SCIENCES

3rd Tri, SY 2021-2022

BSIB622 – INTERNATIONAL ACCOUNTING
HWAC 1
Total Points: 20

Student ID Student
Name
Course Code BSIB622 Course Title INTERNATIONAL ACCOUNTING Section FA

TOPIC Worldwide Diversity

International Convergence of Financial Reporting
HWAC Direction: Read and analyze the statements and answer what is/are required. Write
DIRECTION & your answers using your own words. Each question is equivalent to 5 marks.
REQUIREMENT/S
(Identify the ILOs to 1. Using Hofstede’s (1980) societal value dimensions, explain how
be assessed at the cultural influenced the accountants’ accounting values. What are
end of each the cultural dimensions and indexes to determine a country that
requirement. Include exhibit secrecy hypothesis and conservatism hypothesis? Discuss
the rubric or marking in detail each hypothesis using the country you identified. (C7)
scheme for each
item/requirement.) 2. Current national accounting requirements often differ, with the result
that like transactions and events are reported differently in different
countries. Such differences can have a significant impact on both
the balance sheet and the income statement. These differences
make it difficult to distinguish changes in the performance from the
effects arising from the use of different accounting requirements.
Many stakeholders, such as accounting professionals and business
organizations advocated for a single set accounting standards.
Critically examine the efforts of t he International Accounting Standards
Board (IASB) to harmonize the accounting standards. (C2)

HWAC
OUTPUT

Prepared by: Reviewed/Checked by: Approved by:

DR. MARIA CECILIA P. LAGARAS, CPA DR. JAYENDIRA SANKAR DR. VINODH NATARAJAN
Course Coordinator Programme Head-BSIB College Dean
Date : June 5, 2022 Date : June 5, 2022 Date : June 5, 2022
Q1 :

Conservatism and secrecy, which affect the measurement and disclosure of

financial information in financial reports and have the greatest potential to
affect cross-border financial statement comparability, are two accounting
values directly influenced by national culture, according to this study.

As a result of the above, it is easy to conclude that accounting theory and

practises are the result of individuals who are influenced by their views.
Language, religion, morals, values, attitudes, legislation, education, politics,
social structure, and technology are all cultural influences that influence
accounting.

The Association of Chartered Certified Accountants (ACCA) believes that for

corporate governance and risk management to be genuinely effective, a
healthy culture is required. Regulations and codes will always be less effective
without it.

Accounting's origins may be traced back to ancient Mesopotamia, and it is

strongly linked to ancient Egyptian and Babylonian innovations in writing,
counting, and money, as well as early auditing systems. The government
possessed extensive financial statistics by the time of the Roman Empire.

In general, cultural characteristics influence accounting information

openness, information asymmetry, and conflicts of interest between
management and other stakeholders, as well as how the capital market
regards the accounting information given as reliable.

Accounting professionals must follow the laws and regulations that govern
their domains and bodies of work as a matter of ethics. Avoiding behaviours
that could harm the profession's reputation is a legitimate expectation that
business partners and others should have.
 Q2 :

Points of reason for those who against the harmonization

1. it will impact the corporate management because a complete

restructuring will be required for all the levels of activities which will
be a huge cost

2. impact on existing investors as the invesgors is required to go throgh a

higher re education to understand accounting reports and other
finanacial statement

3. impact on training cost of the company and new recruitment of the

staff who knowledgeable to the IFRs

4. it has also a burden for the exiating stanadard setters

5. Points by those who supporting harmonization

6. under IFRS fair value accounting is used which will give benefit to the
company by reflecting the true fair value

7. the adjustment of market factors and discounting rate is applied to the

revenue recognition and obligation measurment

8. it provide globally harmonisation of the statements with the rest

9. it provides greater comparablity of the statement

10. it provides international crediblity and will attract the forign

investment

11. investrs will be able to compare the financial statemet and to make a
more great investing decision

Rubrics for Q1 and Q2.

RUBRIC / MARKING
SCHEME
  Answers demonstrate a clear understanding of the key
5 elements of assignment questions.
 Answers cover all elements in a substantive manner.
 Ideas flow in a logical sequence.
 Sentences are well constructed, complete, clear, and concise.
4-3  Answers substantially cover the elements of the assignment
questions
 Ideas flow in a logical sequence.
 Sentences are partly well-constructed and clear.
 Answers partly cover the elements of the assignment
2 questions
 Ideas flow is quite vague in sequence.
 Sentences are partly well-constructed
 Answers does not cover the elements of the assignment
0-1 questions
 Sentences are constructed but not clear

LEARNING ASSESSMENT/MARKING FACULTY/MARKER’S FEEDBACK

ITEM CILOs MARKS MARKS
AWARDED
1 C7 5
2 C2 5

TOTAL 10