Critically discuss the influences from outside accounting which have Essay

Critically discuss the persuades from outside accounting which have affected the development of financial reporting in various countries - Essay ExampleAs a point of departure accounting is a product of the environment and all factors attributed to the outside of accounting such as politics, legal framework among others bequeath automatically influence the manner in which the accounting system of a estate operates differently from those of their nations. This brings us to the aspect of political systems. Various nations across the nations embrace diverse examples of politics systems which immensely influence the type of accounting systems to be embraced across its borders. For instance, some of the political systems practiced include the multi-party democracy, one-party systems, traditional monarchies, military machine dictatorships and dominant-party systems (UNITED STATES, 2007). It is imperative to note that, the higher the level of a political system in terms of freedom, t he cut back the rank of a nation. This immensely influences the standards of the accounting systems that are embraced in a particular nation. For instance, the political systems of a nation stand a position of determining the nature of the economic structure a nation embraces hence determining the accounting patterns (TSAMENYI & UDDIN, 2009). Some nations can import or export accounting standards and practices this brings the variability of the accounting systems embraced by diverse nations. In addition, the element of political freedom of a nation is hypercritical in the development of an accounting and reporting systems guided by the full and middling disclosure principle. In essence, when the populace is not allowed to make independent electoral choices, then the possibility of influencing accountable and transparent governance principles which will enable establishment of an accounting profession or system that is founded on the full and fair disclosure principle is low. Simi larly on the side of legal systems, the same case of lack of influence in the formation of these systems defines