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Article
Publication date: 11 June 2021

Chris Patel and Graeme Harrison

This paper chronicles Jill McKinnon's theoretical and methodological contributions to international accounting research generally and socio-cultural research specifically…

Abstract

Purpose

This paper chronicles Jill McKinnon's theoretical and methodological contributions to international accounting research generally and socio-cultural research specifically over a 25-year period, 1981–2006. The purposes are: (1) to apprise contemporary and future researchers in international accounting, working with a socio-cultural lens, of a major contributor and contribution to the historical origin and development of that lens; and (2) to revisit and reappraise McKinnon's identification of critical theoretical and methodological cautions to guide future research in international accounting.

Design/methodology/approach

The paper provides a historical narrative and contemporary appraisal of: (1) McKinnon's seminal doctoral research into the Japanese system of corporate reporting regulation using a holistic and dynamic socio-cultural model of social systems change; and (2) her contribution to the advancement of cross-cultural international accounting research including her critique of that research leading to the identification of cautions, the recognition and observance of which are critical to the development of contemporary and future research. The narrative is informed by historical context of time and space, and imbued and interwoven with the personal story of McKinnon both as human and humane.

Findings

McKinnon's research invoking holistic theoretical and methodological perspectives provides a continuing template and pathway to guide contemporary and future international accounting researchers and to shape the development of international accounting research. Her career, research and humanity leave a legacy distilled into four themes that serve as counsels for accounting research and researchers; eclecticism of world-view and method choice, rigour, holism and the importance of collegiality with and to the accounting research community.

Originality/value

The paper provides original insights into the personality, career development and research of an important contributor to international accounting research specifically and interdisciplinary research in accounting generally. The paper demonstrates empirically the importance of historical analysis, contextualized by time, space and person, in understanding and informing the present state of international accounting research and, hence, linking past, present and future.

Details

Accounting, Auditing & Accountability Journal, vol. 34 no. 8
Type: Research Article
ISSN: 0951-3574

Keywords

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Article
Publication date: 16 October 2017

Peipei Pan and Chris Patel

The purpose of this paper is to respond to calls in the literature to examine personality variables which may provide sharper insights into accountants’ judgments in…

Abstract

Purpose

The purpose of this paper is to respond to calls in the literature to examine personality variables which may provide sharper insights into accountants’ judgments in applying principles-based International Financial Reporting Standards (IFRS). This paper contributes to the literature on the global convergence of financial reporting by examining the influence of an important personality variable, construal of self, on Chinese accountants’ aggressive financial reporting judgments.

Design/methodology/approach

A between-subjects quasi-experiment was applied. In total, 122 Chinese professional accountants were categorized as either independents or interdependents, on the basis of their scores on construal of self scales. Subjects made their consolidation reporting judgments in the manipulated situations based on the financial performance of the investee entity, which refers to the situation where the investee entity makes a significant profit or a significant loss in the reporting period.

Findings

Compared to interdependent accountants, independent accountants used the flexibility allowed in the principles-based standards to make more aggressive consolidation reporting judgments. Also, adoption of IFRS may not necessarily ensure consistent judgments even within China.

Originality/value

This paper provides empirical evidence of the importance of construal of self in examining accountants’ aggressive judgments. The authors suggest that it may be premature to assume that adoption of IFRS will lead to comparable financial reporting. The findings are relevant to researchers who are interested in examining personality and cultural influences on accountants’ judgments both within and across countries. Companies and organizations may incorporate appropriate strategies to recruit and train independent and interdependent accountants, particularly by addressing the influence of construal of self on aggressive financial reporting judgments.

Details

Accounting, Auditing & Accountability Journal, vol. 30 no. 8
Type: Research Article
ISSN: 0951-3574

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Article
Publication date: 5 March 2020

Noriyuki Tsunogaya and Chris Patel

The paper extends the literature by examining the impact of politics, conflicts and compromises resulting from external pressures (gaiatsu, 外圧) and internal pressures …

Abstract

Purpose

The paper extends the literature by examining the impact of politics, conflicts and compromises resulting from external pressures (gaiatsu, 外圧) and internal pressures (naiatsu, 内圧) on the convergence and globalization of accounting and accountability in Japan.

Design/methodology/approach

Using Japan as a case study, it is examined how and why the stimulus for significant accounting reforms arises, how the government manages and reacts to the powerful forces of gaiatsu and how it balances naiatsu among key stakeholders.

Findings

The ongoing changes in accounting regulations in Japan are neither the result of an unmediated response to gaiatsu nor the outcome of naiatsu. Rather, Japanese accounting changes are the consequence of complex external interactions and internal compromises. Specifically, Japan demonstrates a repetitive pattern of conflict management, which alters the domestic power balance based on naiatsu, and forces the Japanese government to make compromises to policy changes initiated by gaiatsu.

Research limitations/implications

The findings have implications for the development of accounting and accountability, the globalized business world and international accounting research because they challenge claims made by global standards setters that international standards such as International Financial Reporting Standards are superior, are built on so-called “best practices” and are relevant to all countries.

Originality/value

Invoking the concepts of gaiatsu and naiatsu is a critical approach to understanding Japan's convergence toward economic liberalism and Anglo-American models of accounting and accountability.

Details

Accounting, Auditing & Accountability Journal, vol. 33 no. 4
Type: Research Article
ISSN: 0951-3574

Keywords

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Book part
Publication date: 1 March 2012

Eva Heidhues and Chris Patel

Over the last decade, international accounting harmonization and convergence with the increasing adoption of IFRS as national accounting standards have become dominant…

Abstract

Over the last decade, international accounting harmonization and convergence with the increasing adoption of IFRS as national accounting standards have become dominant topics in international accounting research (Ashbaugh & Pincus, 2001; Chand & Patel, 2008; Christensen et al., 2007; Daske & Gebhardt, 2006; Daske et al., 2008; Ding et al., 2007; Hellmann et al., 2010; Lantto & Sahlström, 2008; Larson & Kenny, 2011; Peng & van der Laan Smith, 2010; Rezaee et al., 2010; Tyrrall et al., 2007). Given that the primary goal of international convergence is enhancing comparability of financial statements across countries, the influence of accountants’ professional judgment in the interpretation and application of accounting standards has increasingly been recognized as an important and controversial topic. Indeed, a growing number of studies have analyzed the influence of culture on standard setting (Bloom & Naciri, 1989; Ding et al., 2005; Schultz & Lopez, 2001), auditor independence (Agacer & Doupnik, 1991; Hwang et al., 2008; Patel & Psaros, 2000), and accountants’ values and judgments (Doupnik & Riccio, 2006; Doupnik & Richter, 2003, 2004; Patel, 2003). Although prior research has provided evidence that culture influences accountants’ exercise of professional judgments, these studies have largely focused on demonstrating differences between accountants from very distinct cultures or accounting systems. For example, Chand (2008) as well as Doupnik and Richter (2004) examined differences in the judgment of professional accountants with regard to the interpretation and application of uncertainty expressions by comparing Australian and Fijian and German and American accountants, respectively. Moreover, recent research on professional accountants’ judgments (Chand, 2008; Doupnik & Riccio, 2006; Doupnik & Richter, 2003) has largely focused on providing evidence that accountants from different accounting clusters significantly differ in their exercise of professional judgment. Indeed, researchers have often based their country selections on theoretical models of accounting clusters such as Gray's (1988) framework of accounting values or Nobes’ (1983) international accounting classification, predominantly to show differences between the Anglo-American accounting model and the Continental European accounting model.

Details

Globalization and Contextual Factors in Accounting: The Case of Germany
Type: Book
ISBN: 978-1-78052-245-6

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Book part
Publication date: 1 March 2012

Eva Heidhues and Chris Patel

This research monograph critically examines convergence with the adoption of International Financial Reporting Standards (IFRS) in Germany by taking into account the…

Abstract

This research monograph critically examines convergence with the adoption of International Financial Reporting Standards (IFRS) in Germany by taking into account the influence of political, legal, economic, social, cultural, and historical factors on accounting principles and practices. This study makes a contribution by examining issues in the convergence process that may create constraints in achieving global comparability and, importantly, may challenge the International Accounting Standards Board's (IASB) main objective: “to develop, in the public interest, a single set of high-quality, understandable, enforceable and globally accepted financial reporting standards based on clearly articulated principles” (IFRS Foundation, 2011a, Preface to IFRS).1 Specifically, this research monograph examines convergence in Germany by analyzing the development of German accounting and examining issues and attitudes concerning the application of professional judgment, which has increasingly been recognized as an important and controversial topic in international accounting (Barth, Landsman, & Rendleman, 2000; Chand & White, 2006; Dechow, Myers, & Shakespeare, 2010; Patel, 2006; Theile, 2003).

Details

Globalization and Contextual Factors in Accounting: The Case of Germany
Type: Book
ISBN: 978-1-78052-245-6

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Book part
Publication date: 1 March 2012

Eva Heidhues and Chris Patel

Over the last decade, the accounting convergence process with the development and adoption of IFRS as national standards has become the focus of governments…

Abstract

Over the last decade, the accounting convergence process with the development and adoption of IFRS as national standards has become the focus of governments, professionals, and researchers. In 2005, the EU (including Germany) and Australia adopted IFRS. A survey by Deloitte Touche Tohmatsu (2010) reported that 89 countries have adopted or intend to adopt IFRS for all their domestic listed companies. Currently, more than 100 jurisdictions require or permit the use of IFRS, with countries such as Canada, Brazil, and Argentina being the most recent adopters (IFRS Foundation, 2011b). This growing number of countries implementing IFRS and their experiences and emerging challenges have further raised researchers' interest in this controversial topic (Ashbaugh & Pincus, 2001; Atwood et al., 2011; Byard et al., 2011; Christensen et al., 2007; Daske et al., 2008; Ding et al., 2007; Hail et al., 2010a, 2010b; Kvaal & Nobes, 2010; McAnally et al., 2010; Mechelli, 2009; Niskanen, Kinnunen, & Kasanen, 2000; Stolowy, Haller, & Klockhaus, 2001; Tyrrall et al., 2007). However, these studies have concentrated on the development and application of specific accounting standards and practices and/or cross-national and cross-cultural issues concerning adaptation, implementation, and evaluation of IFRS. Moreover, an increasing number of studies have been devoted to classifications of accounting models and categorization of accounting standards, principles, and values (Chanchani & Willett, 2004; D'Arcy, 2000, 2001; Doupnik & Richter, 2004; Doupnik & Salter, 1993; Gray, 1988; Kamla, Gallhofer, & Haslam, 2006; Nair & Frank, 1980; Patel, 2003, 2007; Perera & Mathews, 1990; Salter & Doupnik, 1992). However, very few studies have critically examined the historical development of accounting practices and issues related to convergence in its socioeconomic context and, importantly, we are not aware of any study that has rigorously examined the institutionalization of Anglo-American accounting practices as international practice with an emphasis on power and legitimacy in the move toward convergence of accounting standards.

Details

Globalization and Contextual Factors in Accounting: The Case of Germany
Type: Book
ISBN: 978-1-78052-245-6

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Book part
Publication date: 23 December 2011

Abstract

Details

Achieving Global Convergence of Financial Reporting Standards: Implications from the South Pacific Region
Type: Book
ISBN: 978-1-78052-443-6

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Book part
Publication date: 1 March 2012

Abstract

Details

Globalization and Contextual Factors in Accounting: The Case of Germany
Type: Book
ISBN: 978-1-78052-245-6

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Book part
Publication date: 1 March 2012

Eva Heidhues and Chris Patel

International harmonization of accounting standards and the move toward convergence have revived an increasing interest in the influence of culture in accounting and…

Abstract

International harmonization of accounting standards and the move toward convergence have revived an increasing interest in the influence of culture in accounting and auditing. The growing number of countries adopting IFRS and the increasing acceptance of International Standards on Auditing (ISA) has further raised researchers’ attention. For example, more than 100 countries require or permit the use of IFRS, with more countries, such as Canada, India, and Korea, planning to adopt IFRS by 2011 (Deloitte Touche Tohmatsu, 2007; IASB, 2007a, 2007b). This move toward convergence is driven largely on assumptions and assertions based on enhancing international comparability of accounting and auditing information.

Details

Globalization and Contextual Factors in Accounting: The Case of Germany
Type: Book
ISBN: 978-1-78052-245-6

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Article
Publication date: 1 February 2003

Jim Psaros, Chris Patel and Sriyani Warnakulasuriya

This study is an empirical examination of Australian auditors' interpretation of selected key uncertainty expressions such as virtual certainty, expected, reasonable…

Abstract

This study is an empirical examination of Australian auditors' interpretation of selected key uncertainty expressions such as virtual certainty, expected, reasonable assurance and possible, contained in Australian accounting and auditing standards. The results showed three major findings. First, auditors demonstrated a reasonably high degree of variability in the interpretation of uncertainty expressions. In view of the proliferation of uncertainty expressions within international and Australian accounting and auditing standards, this lack of consistency in interpretation of uncertainty expressions raises some serious concerns. Second, compared with the less experienced auditors, the more experienced auditors demonstrated greater variability in their interpretations of uncertainty expressions. Third, contrary to expectations, this study did not find any difference in judgements between auditors in big‐five and non‐big‐five firms. In aggregate, the findings of the study have implications for standard setting.

Details

Pacific Accounting Review, vol. 15 no. 2
Type: Research Article
ISSN: 0114-0582

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