To What Extent Are Countries Changing with Respect to National Cultures and Accounting Values? Are They Converging or Diverging? Pleas Discuss.

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To what extent are countries changing with respect to national cultures and accounting values? Are they converging or diverging? Pleas discuss. (100 marks) Convergence with IFRS would mean gradually changing a set of domestic rules towards IFRS. For example, in China, the first stock exchange shanghai stock exchange was opened on 1991. To expand the capital market and attract foreign investors, China issued its first accounting standard for listed companies in 1992 (1992 ASBE). The conceptual framework aspects are reasonably close to US and IASC procedure, examined by Davidson et al. (1996). And 1998, 2001, 2006 ASBE was issued one after the other. The 2011 KPMG reported that the 2006 ASBE is convergence with IFRS. Standardization is narrowing down to one policy for any accounting topic. IFRS Adoption means that national rules are set aside and replaced by a requirement to use IFRS. Harmonization is the process of increasing the level of agreement in accounting standards and practices between different countries. Many parties are interested in international harmonization those are who use, regulate and prepare financial statements. Such as investors and financial analysts, multinational companies, some government, stock exchange market and its regulators and accounting standard setters etc. Investors and financial analysts * They need to be able to understand the financial statements of foreign companies whose share they might wish to buy. For example, Nokia provides different language versions (English, Germany, French and Germany etc.) for its financial reporting to meet foreign investors need. * They would like to be sure that statement from different countries are reliable and comparable. Such as Bank of China and HSBC prepare its financial statement accordance with IFRS, which increase its reliability and comparability. * To reduce

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