Essay on European Accounting Model

10864 Words Oct 9th, 2015 44 Pages
Advances in Accounting, incorporating Advances in International Accounting 29 (2013) 124–133

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Advances in Accounting, incorporating Advances in
International Accounting journal homepage:

Continental European accounting model and accounting modernization in Germany
Andreas Hellmann ⁎, Hector Perera 1, Chris Patel 2
Department of Accounting and Corporate Governance, Faculty of Business and Economics, Macquarie University, Sydney, NSW 2109, Australia

a r t i c l e

i n f o

German Commercial Code
International Financial Reporting Standards
Act to Modernize Accounting Law
…show more content…
© 2013 Elsevier Ltd. All rights reserved.

1. Introduction
Some of the earliest writings in international accounting attempt to classify national systems of accounting primarily to organize data, describe and compare different accounting systems, understand why and how national accounting systems differ, and explain and predict future developments (Choi & Meek, 2008, p. 34; Nobes & Parker,
2010, p. 59). Research attempting to classify accounting systems has taken two main approaches, namely, extrinsic classification and intrinsic classification. Extrinsic classifications utilize a methodology that is based on factors that are hypothesized to influence the nature and practice of accounting such as culture (Gray, 1988), economic makeup
(Mueller, 1968), and regulatory style (Puxty, Willmott, Cooper, & Lowe,
1987). These approaches classify accounting systems based on one or more such factors. Alternatively, intrinsic classifications are based on financial reporting practices that are analyzed in order to identify groups of accounting systems. A number of environmental factors are then

⁎ Corresponding author. Tel.: +61 2 9850 4055.
E-mail addresses: (A. Hellmann), (H. Perera), (C.

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