Why do countries have their own unique set of financial reporting practices?
What will be an ideal response?
Five commonly accepted factors influence financial reporting practices: (1) legal system, (2) taxation, (3) financing system, (4) inflation, and (5) political and economic ties. Because of the differences in these five factors from one country to another, and because international standards had not been created when many individual country's standards were created, countries continue to have unique financial reporting practices and standards.
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Fill in the blank(s) with the appropriate word(s).
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