There is some opinion that the historical development that has been described previously have had a uniform accounting system throughout the world, but it is so far from actual reality. Although there are some similarities, but no two are exactly the same system. The reason is the difference in the environment. The reality is the environment and developing countries in the world do not simultaneously. Although accounting practices evolve, but there are many differences in the number of privatized industries, the level of industrialization, inflation rates, and rates of economic growth.
Accounting for environmental influences on
In a large degree, the needs of accounting in the business world very influenced by economic factors, social, and political. A model below shows the factors that affect the accounting system. Inside are the factors:
• In this form of corporate ownership, the need for accountability and disclosure to the public would be greater in the limited company rather than individual companies.
• Sources of funding obtained from the company’s external shareholders will result in a greater need for accountability and disclosure of information rather than on corporate funding from its own capital or bank loans.
• Taxation is a very important factor when an accounting system is in countries with strict legal and taxation systems.
• Where a country has a highly developed accounting profession, then there will tend to have a public accounting system assessment is more developed.
• Development of the accounting profession is also very dependent on the presence of good infrastructure for education and accounting research.
• The political system affect the accounting system in the case of accounting will reflect the philosophy and the objectivity of the political system of each country
• the social climate will affect how the delivery and consultation of employees on environmental issues
• The economic development of the country is very influential, as there are significant differences between the agrarian and industrial country.
• Inflation is usually associated with economic growth and will affect accounting systems in terms of cost assessment.
• Legislation and law will also affect the accounting system.
• Factors affecting the international accounting system in terms of how environmental changes can create harmony in international accounting.