Countries have their own unique economic conditions, commercial trading systems and procedures, distinct sets of political policies, and legal procedures and systems, hence, a country has its own way of implementation accounting practices and there are no two systems are exactly alike...read more
1.7.2 The linkage of tax laws and accounting principles requirements for enterprises in certain countries
Taxation laws are oftentimes in conflict with reporting in accounting. There are temporary and permanent differences between tax reporting and financial reporting which results to discrepancy in the amount of financial accounting income and taxable income...read more
1.7.3 Differences in the degree of development of the capital markets in countries and their effect on the development and use of generally accepted international principles of accounting
A capital market maybe equity-oriented or debt-equity oriented.
A capital market is known as equity-oriented when organizations turn to the stock market as their main source of capital.
While, a capital market is known as debt-oriented when companies depend on bank financing as their primary source of capital...read more
Harmonization of Accounting Standards through the International Accounting Standards Board (IASB)
Benefits of Global Accounting Standards