Accounting System
A country’s accounting system, which is referred to as a set of accounting rules or practices used in financial reporting (Nobes, 1998), is shaped by various factors including those specific within a particular country. As a result, there have been variations in financial reporting practices around the world. A number of factors that influence countries’ accounting systems have been identified in the literature (see Nobes, 1988). Among those factors, perhaps accounting system orientation, stage of economic development, and culture have contributed most in shaping Indonesian accounting system.
