A Framework for Describing National Financial Accounting Systems: Towards an Archetype

Abstract

This paper proposes a framework to facilitate description of national financial accounting systems. Its first element, broad aims, identifies the fundamental purpose of national financial accounting systems as being to effect a macro‐user or micro‐user orientation. From this emerges the second element, institutional environment, which describes the nature of regimes put in place to effect regulation. This influences the third element, the specific accounting rules and practices adopted. Aspects of international practice relating to each of these three elements are illustrated. The pedagogical benefits of the framework are demonstrated. The standard vocabulary and the structured format of the framework is used to describe, in capsule form, the national financial accounting systems of Korea and Indonesia. The framework seems likely to enhance understanding of the similarities and differences in national financial accounting systems and to contribute useful insights to international accounting matters.

Citation

Craig, R. and Diga, J. (1999), "A Framework for Describing National Financial Accounting Systems: Towards an Archetype", Asian Review of Accounting, Vol. 7 No. 1, pp. 65-95. https://doi.org/10.1108/eb060706