Legal Systems: Common Law vs. Code

Legal Systems: Common Law vs. Code Law Accounting
Accounting can also be classified by a nation’s legal system.21 This view has dominated accounting thinking for the last 25 years or so. (1) Accounting in common law countries is characterized as oriented toward “fair presentation,” transparency and full disclo- sure, and a separation between financial and tax accounting. Stock markets dominate as a source of finance, and financial reporting is aimed at the information needs of outside investors. Setting accounting standards tends to be a private sector activity, and the accounting profession plays an important role. Common law accounting is often called “Anglo-Saxon,” “British-American,” or “micro-based.” Common law accounting origi- nated in Britain and was exported to such countries as Australia, Canada, Hong Kong, India, Malaysia, Pakistan, and the United States. (2) Accounting in code law countries is characterized as legalistic in orientation, opaque with low disclosure, and an alignment between financial and tax accounting. Banks or governments (“insiders”) dominate as a source of finance, and financial reporting is aimed at creditor protection.

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Sistem Hukum: Common Law vs Kode Hukum Akuntansi
Akuntansi juga dapat diklasifikasikan oleh system.21 hukum suatu negara Pandangan ini telah mendominasi akuntansi berpikir selama 25 tahun terakhir atau lebih. (1) Akuntansi di negara hukum umum ditandai sebagai berorientasi pada "penyajian wajar," transparansi dan penuh pengungkapan yakin, dan pemisahan antara akuntansi keuangan dan pajak. Pasar saham mendominasi sebagai sumber keuangan, dan pelaporan keuangan ditujukan untuk kebutuhan informasi investor luar. Menetapkan standar akuntansi cenderung menjadi aktivitas sektor swasta, dan profesi akuntansi memainkan peranan penting. Akuntansi hukum umum sering disebut "Anglo-Saxon," "British-American," atau "mikro berbasis." Akuntansi hukum umum orisinalnya terkontaminasi di Inggris dan diekspor ke negara-negara seperti Australia, Kanada, Hong Kong, India, Malaysia , Pakistan, dan Amerika Serikat. (2) Akuntansi dalam kode hukum negara ditandai sebagai legalistik dalam orientasi, buram dengan pengungkapan yang rendah, dan keselarasan antara akuntansi keuangan dan pajak. Bank atau pemerintah ("orang dalam") mendominasi sebagai sumber keuangan, dan pelaporan keuangan ditujukan untuk perlindungan kreditor.