Question 1 (a)

Question 1 (a)

The three aspects of culture that differ are ethnicity, religion, and education. Ethnicity is the people’s culture, and it is very critical in defining a person’s culture. Furthermore, it identifies the physical appearance of a person. For example, one can differentiate between Chinese and African. The other thing is religion. Religion involves a set of principles and beliefs relating to the presence of God and the world. It attributes to cultural identity by aiding someone in determining moral and personal behaviors. Religions have immensely contributed to the shaping of culture. The third aspect is education. Educations impacts directly on children. For example, some schools prefer quiet learning, while others prefer participatory learning. The religious aspects that differ in many countries are worship methods and religious types in the world. For instance, Christianity differs from Islam. The methods of worship in Islam are different than those of Christians. The types of religion in many states are not the same. Some Asian countries are purely Islamic, while many countries in the West and Europe are Christian backgrounds. The cultural differences tend to project certain principles. Especially, education affects accounting principles. The accounting standards and principles differ as a result of differences in education offered by those countries.

Question 1 (b)

If the United States of America companies adopt, it will affect how the financial activities will be recorded in the financial statements. Also, it will impact the costs of examining the users of financial statements. Besides, it will affect companies’ capability to use financial statements in assessing the projected cash flows in the corporations. If US companies adopt IFRS, it will help improve financial recording among companies.