Abstract

Accounting practices in different countries influenced by several factors. This study has identified some factors those have a great impact on accounting practices in different countries. This study also explains the accounting practices in a specific country: New Zealand, which is one of the developed counties in the South Pacific Ocean close to Australia and a member of commonwealth countries. However, this study is a desk-based research that analyses the existing knowledge on factors influencing accounting practices from different published academic articles, reports, periodicals and webpages. This study found that accounting policies and standards in New Zealand came from Australia and the United Kingdom, and International Financial Reporting Standards (IFRS) and the External Reporting Board (XRB) are the most influential body of New Zealand for setting up standards for its local demand. Moreover, New Zealand ensures good accounting practices because of having political stability, economic growth, and transparent systems in all public and private sectors. However, this study would be an excellent addition of knowledge on factors affecting accounting practices.

Keywords: International financial reporting standards (IFRSs), external reporting board (XRB), accounting practices, factors, New Zealand.