BACKGROUND

International accounting has a significant impact within the society. As an economics, accounting
give information about a company and their transaction to facilitate decision resources allocated
for information users.

The difference about accounting all over the world make the users should following the progress
of accounting. We need to classify financial accounting system before we use it. Accounting
standard and the accounting practice each country is a result form the interaction from economic
factor, historical, institutional, and cultural. Factors that influence accounting development will
explain why there’s different accounting system each country. Country with strong securities
market like United States an United Kingdom, their focus will be about how to maximize the profit
and help investors to predict cash inflow for the future. Disclosure is a basic qualification for a
company that already go public. The opposite of a country who use bank as their fund sources for
example swiss and japan as country that make disclosure as unimportant thing. The law also giving
impact, in general a country that adapting common law the accounting standard made by private
sector that make they make the standard more innovative and adapting. Taxation also affecting the
system, that make sometime the qualification of a financial report in a country need a special
principle of accounting. Politic and economic relationship also influence the accounting system
like the colony using their concept of accounting from the colonialist. The development of
accounting profession in a country also give impact for accounting system itself. The quality of
accounting in a country can be shown from their standard. International accounting also important
for the Multinational Enterprise company why because they do exports and imports they also need
accounting standard to convergence the difference report of accounting standard all over the word.