Classification of Accounting Systems

Abstract

This chapter presents the hypothetical classifications of international accounting system and shows the three main information systems in details: the European accounting system, the US GAAP, and international accounting standards. Here, “accounting system” will be used in terms of the financial reporting practices employed by a company for an annual report. The systems could be classified into groups by similarities and differences. If all or most of the enterprises in a country use very similar accounting practices, this might suggest that countries can be classified on the basis of accounting practices.