“All over the world, different countries vary in their general accounting procedures since each nation has its own financial framework. Although there had been an agreed GAAP – Generally Accepted Accounting Procedures, each country requires a
certain type of financial reporting from accountants. Some countries follow GAAP but more developed countries prefer International Accounting standards (IAS).Each country has a unique political and social climate which affects the government. The government is mainly responsible for issuing regulatory policies that would provide guidelines for accounting reports and practices.
International accounting exists because the financial transactions of a developed country is more complicated than that of developing nations. Some set of information for one country may not be relevant or applicable in another country’s finances. For example, Japan has developed an intricate accounting framework that is not easily understood by accounting practitioners from some parts of the world. History may also influence the accounting procedures of a nation as countries like US adopted some of its practices from Germany as a result of the war.