The legal system has majorly affected the accounting. Accounting is the art of collection and analyzing the data of the organization and interpreting the same in the very useful and defined manner. The legal system majorly in the field of accounting denotes the accounting standard bodies and the standard setting bodies. These bodies define the accounting standards and policies and describe the way in which the accounting is done and how the same shall be presented and disclosed to the users of the financial statements (Watts & Zimmerman, 2016)
For instance, there was no major part of the check till the date when the major collapses have happened during the 21st century. These include the Lehman Brothers, One Tel Co, HIH Insurance, etc. All these are the best examples which proves that the accounting field has emerged as the new field which contains new statutes and new governing laws which help the stakeholders of the company to understand as to why the particular company is following the particular method of accounting and what are the challenges that the company will face in case the accounting method as envisaged by the accounting standard bodies are applied. These accounting treatments are certified by the chartered accountants duly qualified and certified with the Institute of chartered accountants and strictly adheres to the guidelines as prescribed by the relevant accounting policies and the accounting standards (Puro, 2016). In this manner, the changes in legal system due to various factors have influenced the development and regulation of accounting in New Zealand and Paris.
References
Puro, M. (2016), “Audit firm lobbying before the Financial Accounting Standards Board: An empirical study”, Journal of Accounting Research, 624-646.
Watts, R. L., & Zimmerman, J. L, (2016), “Towards a positive theory of the determination of accounting standards” Accounting review, 112-134.
