In: Accounting
Research undertaken in the country of Acirfa (the country) has revealed the following:
Required
Based on the information provided:
1) Environmental Factors Affecting Accounting Practice-
2) Hofstede’s four original dimensions-
Power Distance-
This dimension expresses that less powerful members of society expect a fair distribution of power in society because power is unevenly distributed. How society handles disparities between people. In societies exhibiting a greater degree of power distance, people accept a hierarchical order in which everyone has a place and which does not require further justification.
Individualism-
In the individualism side of this dimension, a loose social structure is defined as a preference in which individuals are expected to care only for themselves and their immediate families. Collectivism, in contrast, represents a preference for a stronger framework in society in which individuals can expect their relatives or members of a particular group to care for them in exchange for unquestioned loyalty.
Masculine-
The masculine side in this dimension represents a preference for success, heroism, assertiveness, and material rewards for success in society. Society at large is more competitive. On the contrary, femininity stands for the priority of care, modesty, care for the weak, and quality of life. The society at large is more consensus-oriented.
Uncertainty Avoidance
Members of this dimension society feel uncomfortable with uncertainty and ambiguity. Also, its effect on rulemaking is taken into consideration. How does this one society deal with the fact that the future can never be known: should we try to control the future or just let it happen? Countries with high uncertainty avoidance maintain rigid codes of trust and behavior and are intolerant of unconventional behavior and ideas. These countries often require multiple regulations to reduce uncertainty.
3) Accounting values model developed by Gray (1988)