Accounting, Culture And Emerging Economies: IFRS In Central And Eastern Europe

Abstract

The work of Geert Hofstede and S.J. Gray has provided a framework for many studies of the potential impact of cultural values on accounting in various countries. This paper provides a comparative analysis of accounting perspectives in Central and Eastern European countries (CEEC). The CEEC are former communist states in Europe which became independent countries after the collapse of the Iron Curtain. Twelve CEEC were selected for study: Bulgaria, Croatia, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Serbia, Slovakia and Slovenia. Each is examined for Hofstede’s six cultural dimensions and a corresponding accounting profile is derived based on Gray’s accounting values. Profiles for each country are compared to an independent IFRS favorable profile proposed by the author as part of a broader analysis of cultural patterns, among other factors, for successful IFRS implementation.