A variety of factors such as organization size, company structure and company’s industry would affect company practices. Among these factors, culture plays a vital role because “cultures of a nation are instilled in its people and as such may help explain why things are as they are”(Haniffa & Cooke, 2000, p.1). MS Smelting is a company which originates from Malaysia, a multi-racial country with complex cultural norms. Three prime factors are used to explain the company’s accounting practices: culture, politics and the British colonization. The first point is supported by Hofstede-Gray framework. Conservatism due to culture The cultural-based theory of the Hofstede-Gray framework can be used to understand why national accounting practices take the form they do ( Abdullah.T., 2011, p.1). According to Figure a, it can be seen that the Hofstede-Gray theory is a combination of, Gray’s accounting values (professionalism, uniformity, conservatism, secrecy) with Hofstede’s cultural values (power distance, uncertainty avoidance, individualism and masculinity).Although Malaysia