THE TRANSFER OF ACCOUNTING TECHNOLOGY: THE CASE OF MALAYSIA

Abstract

This empirical study examines the ability of the Anglo‐American model of accounting (AAM) to satisfy the financial information needs of report users in information exists in all nations. However, due to a number of factors, many LDCs and NICs, possess weak accounting functions. As a result, the flow of information is restricted. One remedy for a nation is to adopt a mature accounting system from an external source. Previous work has suggested that a foreign accounting system would be unable to satisfy the financial information needs of report users. This study proposes that the findings in the literature were based upon descriptive data, and that there has not been enough empirical assessment of the ability of imported systems to satisfy the information needs of report users. It was hypothesised in this study that the AAM is able to satisfy the needs of report users in Malaysia, and, that this could be achieved with limited detrimental effects. Accounting and cultural profiles were constructed to distinguish Malaysia from Anglo‐American nations. The works of Hofstede and Gray were prominent in the development of these profiles. A questionnaire was constructed and administered to Malaysian accountants. These accountants were used as a surrogate for members of the wider Malaysian business environment. The questionnaire examined the existence of specific quantitative and qualitative information characteristics in Malaysian accounting reports. The results provided evidence that the Malaysian accounting system, which had been based upon the AAM, was able to satisfy the financial information needs of report users in Malaysia. There was also, in the view of Malaysian accountants, an absence of detrimental side‐effects of adoption. These findings have implications for both prior research, and the alternatives available to nations. LDCs and NICs alike, for improving their accounting function.

Citation

Carlson, P. (1995), "THE TRANSFER OF ACCOUNTING TECHNOLOGY: THE CASE OF MALAYSIA", Asian Review of Accounting, Vol. 3 No. 2, pp. 70-89. https://doi.org/10.1108/eb060660