Comparative characteristics of accounting models

Abstract

The relevance of this study lies in the need to investigate evolution of accounting practices and influence of economic, political, and social factors on them over time. Investigating the evolution of accounting practices is essential to gain insight into the historical context of how accounting has adapted to the changing circumstances. This knowledge helps appreciate the foundations of modern accounting and identify the reasons behind current practices. The purpose of this study was to compare the types of accounting models and to consider their impact on the present accounting systems. Among theoretical research methods, which formed the basis of this study, are methods of qualitative data processing and prognostic methods. Key element of the research methodology is the historical-theoretical part, which involves the study of accounting models of different groups of countries, considering the connections and interdependencies between them. It was concluded that the development of accounting models was affected by various factors that lead to distinguishing certain types with their own characteristics: Continental (with strict laws and conservatism); Anglo-American (limited intervention in accounting regulation); South American (adaptation to high inflation and simple accounting system) and Islamic (compliance with religious principles and lack of diversity in accounting). The orientation of the information is different for every separate model. The continental model is intended for state needs and the provision of reports; the Anglo-American model is for the needs of investors, stock market participants and the requests of creditors; the South American one is focused on state regulation and taxation of economic activity; Islamic is for state and economic regulation and religious principles. The study of both the rudimentary state and the modern application of the international accounting system plays an important theoretical and practical role for the development of accounting and taxation area. Practical value of the study is that the research results and discussions enhance better understanding the nature of modern accounting practices, provide insight into how changes in business processes, cultural norms, as well as legal and regulatory frameworks shaped accounting practices and systems

Keywords

• accounting systems
• anglo-american model
• continental model
• south american model
• islamic model