International

Accounting
(International
Harmonization)
PowerPoint Presentation
by Matthew Tilling
©2012 John Wiley & Sons Australia Ltd
 Cultural Impact on
Accounting Practice
1. Professionalism versus statutory control
 Cultural Impact on
Accounting Practice
2. Uniformity versus flexibility
 Cultural Impact on
Accounting Practice
3. Conservatism versus optimism
 Cultural Impact on
Accounting Practice
4. Secrecy versus transparency
 Religion and How it Affects
Accounting Practice
• Religion is often seen as a subset of culture.
– It can have a significant effect on business practice
• Two aspects shape the relationship between Islam
and accounting. For example in Islam
– Islamic law regulates all aspects of life.
– In addition certain Islamic economic and financial
principles have a direct impact on accounting practices.
Particularly
• Requirement for zakat (a religious levy)
• Prohibition on riba (usury)
• Accounting and Auditing Organizations for Islamic
Financial Institutions (AAOIFI).