However, as world trade and financial markets get more and more integrated, these differences are being either removed or narrowed down leading to the development of a single universally accepted accounting standard.
As brought out earlier, accounting practices are shaped by economic, political, cultural and legal factors. It is necessary to understand these differences to have a wider understanding of accounting practices as well as to be better prepared to operate in a globalized market. Some of the salient differences between the systems prevalent in the United Kingdom and Germany are in the fields of:
Strategic Emphasis. The Continental system lays greater emphasis on technological advancement and on maintaining a long-term relationship with bankers, suppliers and customers alike, vis--vis the Anglo-American model.
One practical difference that comes immediately to mind as a result of the above factors, is the different method of depreciation followed in the United Kingdom and Germany, which are at the opposite ends of the spectrum. ...Show more