Abstract:
Despite efforts to harmonise international accounting frameworks over the past 20 years, empirical
enquiry into its effect on accounting practice has yielded results indicative of little success.
Arguably, the linkage between culture, Generally Accepted Accounting Principles, corporate
reporting governance as a mechanism of cultural control, and disclosure practice has been clouded
by research efforts which continually misused traditional definitions of culture as societal values
alone. To that end prior research has shown that widespread variation in accounting disclosure
practice exists, and more significantly remains unexplained even within countries exhibiting similar
societal values. This paper has elucidated upon the above defect as it applies to international
accounting generally by operationalising and with greater rigour testing the relationship between
Lanis' coefficient of corporate reporting governance, societal values, GAAP and disclosure
practices. In doing so, international accounting in general and harmorusation in particular will be
provided with an adequate framework for establishing the linkage between societal culture and
disclosure practices; hence aiding in harmonisation policy development.
