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Introduction.
The Whitlock Company is public accounting firm that I have been
working with for the past six years. In the six years I have ensured that I have
worked hard and provide my worth through accomplishing the various tasks
assigned to me and in the process sharpening my skills and potential. It is for
this reason the top management promoted me to the position of head of legal
advisor to our clients on matters pertaining the client aspirations to venture
into international business. My responsibilities will therefore be advising the
clients on the pros and cons of the international business and how to go about.
Cont.
The company has made much progress since I joined three years later after its
establishment and during those years, it has made remarkable milestones which has
made it be recognized worldwide. The company is located in Netherlands where its
main office is and has several branches all over the world. Some of the service that
it offer include; Auditing, Public Accounting, Taxation Accounting, Forensic
Accounting and Book keeping.
Environmental issues affecting accounting diversity
The rule and regulations of accounting are affected by
different factors which include:
Economic environment
This provide the structure and information that need to
be reported and hence a major influence of the financial
reporting framework which comprises of:

Economic openness: this is a good
environment for investors since it give the notch of
good reporting of accounts. With improved
reporting of accounts, there is a high interest in
investing in such as country.

Privatization: this lead to the availability if
finances publicly and have been adopted by various
countries such as Pakistan and Iran. It is through
privatization that there was need to adopt the
International Financial Reporting Standards. (IFRS)
in many countries.

Economic development stage: this is
possible through raising of more capital and adopt
different accounting practices that will ensure
development. Hence the framework of the
accounting practice have a lot in economic
development.

International trade: the method of approach
of international trade affect the framework of
accounting that have been used national wise.
Hence adoption of the IFRS is not easy for many
countries but it paramount for all.
Political environment
There is a major link between the
have accounting systems that advanced
economic system and the political
though are prone to changes. Hence it is
environment in the determination of the
good to ensure that there is:
practices to be carried out for rules and
regulations. A country political system is

Political stability

Accountability

Democracy
very important in the determination of its
financial reporting. Developed countries
whose democracy if highly rated they
Tax and legal environment
Legal environment is mainly addressed through distinction of code law and
common law. In common law, countries are obliged to having fair presentations, full
disclosure and transparency. This is done with the aim if satisfying the shareholder
and protecting their rights. In code laws, there is the enforcement of the national
standards of accounting with major keys players involve such as the banks, business
associations and labor unions.
In this mode of accounting the reporting system is geared towards the protection
of the creditor which is seen through disclosure of less information. Hence the
adoption of the IFRS is important in these two case scenario especially where it is
difficult in implementing the IFRS in code laws as compared to the countries using
the common laws.
Professional environment
The degree of the accounting profession affect the development and the extent of the development in
financial reporting. Since accounting profession is broad, it is measured through:

Having adequate accounting standards.

Important professional bodies are paramount.

Accountant qualifications should be adequate

Legal and regulatory backing of rules and regulations should be paramount.
Business Environment
Factors that affect the diversity of
accounting on a business environment
include:
The characteristics of the firm:
some of the characteristics include;
 Size: the financial reporting is
dependent on the size of the firm
hence the difference between big
and small companies.
 The sector of the industry: the
dominate industries in a country
tend to influence the financial
reporting, for instance the oil
industry.
 Legal form: the legal status of a
firm affect the financial reporting.
 Concentration of ownership:
the number of stakeholders in a
firm.
 The type of privilege the
financing system has.
 Capital development
milestone.
Cultural Environment
A country’s cultural values plays a key role in their financial reporting. There are various
dimensions of the international difference which include: the small versus large, femininity
versus masculine. Grays accounting of value he identifies international differences in
accounting that he explains they come about and proposes a framework that link the
development of financial reporting with culture. The four cultural dimensions that he
identified include: statutory control versus namely profession, flexibility to uniformity,
transparency to secrecy.
International Environment
This contribute majorly in shaping the characteristics of the financial reporting. International firms which
are big have a key role in the shaping of the accounting internationally. With experienced staff it plays a key
which ensures in the perfect financial reporting systems and process. The bond of the big firms with their client
facilitate this through additional of information and there are greater details explained. Many multinational
companies ensures that the implementation and adoption of the IFRS is successful and an easy process in that
matter.
Potential Issues

Legal issues: the country laws need to be
country is known for taking contract seriously as
followed to the letter failure to which it will led
compared to other countries.
to deportation or even imprisonment.



Political problems: the politics of a given
Language barrier: This in one way or another
country can change with time which inter affect
poses a threat especially if one is a foreigner and
the business. In our case Netherlands is political
does not understand the language of the people.
stable country and hence conducting of business
Cultural barriers: due to different ways of doing
business the country culture may differ in one
way or another in handling of various issues.
Netherlands uphold their values and expect
everyone to respect that. For instance the
is less to be affected.
References
Australia, C. (2016). Global Business. Cincinnati OH:
Cengage Learning US.
Avadhani, V. (2010). Global business. Mumbai [India]:
Himalaya Pub. House.
Martin, J. & Chaney, L. (2012). Global business
etiquette (1st ed.). Santa Barbara, Calif.: Praeger.