Abstract
In this document, we assess to what extent differing national cultures are relevant to an understanding of the reasons for accounting differences, and therefore to the process of classification of countries. According to the dictionary "culture" refers to the cumulative deposit of knowledge, experience, beliefs, values, attitudes meanings, hierarchies, and religion. Culture is also referred to as the systems of knowledge which are shared by a relatively large group of people. In this essay, we will focus on the culture of a nation as a whole and not take into account the culture of an individual person. As far as "accounting differences" are concerned, we should understand that we are dealing with the differences in accounting systems. As it has been mentioned in an Australian review, accounting systems belong to four defined systems which are: legal, corporate financing, financial reporting and corporate governance.
