Accounting Diversity

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Accounting Diversity Although accounting standards and practices are the same across the board in their orgin, the Accounting and taxation structures of different countries around the world make them vary between countries. Different countries apply different accounting practices. This accounting diversity is the reason that one company may seem profitable while another seemstobe operating at a loss. This difference between global accounting practices can head to poor business decision-making difficulties in raising capital in different or foreign markets, and difficulty in monitoring competitive factors across firms, industries and nations. These accounting practices are linked to the objectives of the parties who will use the financial information, including investors, lender and governments. While International AccountingStandard Committee, is trying to make a single set of high quality understandable, enforceable accounting standards worldwide. The USA is resisting, insisting that no standard are good as ours. We use the GAAP, or the Generally Accepted Accounting Principles. However because of the Enron situation, the US standards dropped and support for the international standards increased. To engage in social interaction it amount to playing a language game, that is the conventional application of certain concept or the interactionof certain rules which define a particular version of the world as relevant. The rules of the language-game, when they are eventually internalized, thereby constitute a cognitive matrix of varying complexity, through which one perceived and interprets events taking place in the World. The difference in accounting principles between countries could really cause inconsistencies between international operations. Maybe if an international standard were set for all countries, there would be less quarreling and more agreement in accounting between countries. There would be less discrepancy in the accounting principles and the


References: Wittgenstein , Ludwig (1983 {1953}, Philosophical Investigations , TR. G.E.M., Anscombe, Oxford: Basil , Blackwell. Diversity in Accounting Principles, William J Bruns. 1992. Encyclopedia of Management , Cary l. Cooper and Derek K. Channon. 1998 Business & Economics -701 page.

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