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One of the most important topics concerning culture and accounting standards is that of multi-national corporations' need for the establishment of international standards. 'Financial reporting has long been guided by the dictates of national standards. The accounting community has always been in agreement as to the importance of official standards to ensure the reliability and relevance of financial information. In addition to each country's national standards; accounting officials and educators sought the development of international standards (Sawani).' Each corporation is bound to report their numbers in adherence to each country's standard; however the tricky part appears when the differing standards of the countries they operate in collide. Questions on transparency and how different accounts should be labeled and treated are brought forth, making it difficult for any company to come to compromise and make all parties happy. While developing an established set of international accounting standards has been a long time in the making, political and legal, as well as cultural difference has made it difficult.

Using the accounting values we described in the previous section, five accounting systems can be identified based on cultural influence and geographic region: Anglo-American, Nordic, Germanic, Latin, and Asian accounting. Each of the five accounting systems can be described by how they deal with the topic of transparency, which group their focus is on, and what the dominant influences are in their markets.

•Anglo American: mostly practiced in the United States, the United Kingdom, Australia, and other where the UK had a prominent influence. Characterized as more flexible and transparent compared to the other accounting systems. Focuses largely on corporations and investors, where the securities markets are the dominant influence.

•Nordic: includes the Netherlands, Denmark, Sweden, Finland, and Norway. Described as less conservative and more transparent, taking a business economic approach to accounting with a focus on creditors, government and tax authorities. It places a heavy significance on taxation.

•Germanic: include: Germany, Austria, Israel, and Switzerland. Germanic accounting is highly influenced by company law and taxation. The information needs of creditors and tax authorities are given preference, and can be described as conservative and secretive.

•Latin: can be divided into two groups. The more developed group consists of Argentina, Belgium, France, Portugal, Spain and Italy while the less developed group includes Brazil, Chile, Colombia, Mexico, Peru, and Uruguay. This group is described as conservative and secretive with a regard to company law and taxation. This accounting system places an emphasis on uniformity and a true and fair view concept.

•Asian (Japan): Asian accounting tends to be conservative and secretive, but some Asian countries seem to have a level of Anglo-American and Germanic influences. It takes into account the needs and priorities of creditors and tax authorities first with a major government influence.

One of the main reasons to establish an international accounting standard is stated in our textbook, Interna本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。