International Accounting: Development and Classification - Essay Example

This legal system has contribution to the development of the current accounting regime. The French code law has especially influential as Islamic law is used on family matters related to divorce, marriage, and divorce, among others. Due to the influence of the French code law, accounting is linked to taxation. Preparation of financial records is done together with the other preparation for the tax payable to the authorities. The Algeria has close political association with fellow Arabic countries.

It is a member of the Arab league. Its main economic partner is the European Union and particularly the French, Spain, Italy, and Germany. Other important partners are United States and turkey. Main export is hydrocarbons and it imports machinery and infrastructure equipments. The level of economic development in Algeria is low. The country is a middle income economy with a per capita income of $7,600 PPP and a GDP of $325.0 billion according to 2012 estimates (Accounting, 2014). As much as 23% of the population lives below poverty line.

The economy is not diversified as it relies heavily on sales of commodities. Inflation level is low at 3.9% according to 2013 estimate accounting (Publications 2014, January 9). Education level is low especially among the indigenous Berbers who live in remote areas of the country. The education is however increasing the level of investment in the education sector using the money earned from the sale of commodities and hydrocarbons. . China is country that is developing very fast. It receives billions of dollars annually in foreign domestic investments.

The main source of finance is banks and the government. Chinese banking industry is highly developed and liquid. The government also backs some of the biggest banks with huge amount of resources. On a lesser scale, start-ups get finance from venture capitalists and the stock market. Chinese legal system is a mixture of code law and native customers and practices. It also has