Exercises 2

Exercises

2. Consider the following countries: (1) Belgium, Bulgaria and Romania joined in January 2007.
(2) China, (3) the Czech Republic, (4) Gambia, Required: Which factors affecting accounting
(5) India, (6) Mexico, (7) Senegal, and devel likely to be th st seri
(8) Taiwan. evelopment are likely he most serious
obstacles to achieving accounting harmoniza-
Required: Where would they be classified tion with the other 15 member nations?
based on legal system? Where would they be 6. Gray proposed a framework linking culture
classified based on accounting practice sys- and accounting. He predicts four accounting
tems? Justify your answers. (Hint: Web sites values (professionalism, uniformity, conser-
with information on countries of the world vatism, and secrecy) based on Hofstede’s four
include the Encyclopaedia Britannica Online cultural dimensions (individualism, uncer-
(www.eb.com) and The World Factbook (www. tainty avoidance, power distance, and mas-
cia.gov/ library /publications/the-world-fact- culinity). Exhibit 2-2 has Gray’s predictions
book).) and also notes that individualism and uncer-