A consideration of IFRS education and acceptance from culturally diverse backgrounds: a South African perspective

Abstract

Accountancy's double-entry bookkeeping system has spread throughout the world over the past 5 centuries. Within each country, local accountants have adopted accountancy practices to suit their unique environment. In the modern global business environment, this uniqueness makes cross-border financial statement comparisons difficult. A key objective of a globally acceptable set of accounting standards (such as IFRS), is to enhance such trans-national comparisons of corporate performances. However, research revealed that the influence of cultural backgrounds is a key contributing factor influencing accounting practices. It is evident that culture is a key concomitant of accounting development, including accounting education. Two globally recognized authors on the importance of culture in the work environment, Hofstede and Gray, developed cultural dimensions to gauge the cultural impact in a business environment. The primary objective of this research was to consider the impact of different cultural backgrounds, as measured by Hofstede and Gray on prospective accountants in South Africa, as an early adopter of IFRS. The results of the study suggest that culture will play an important role in accounting education and acceptance in the culturally diverse South African context.