Abstract
In this study, we are trying to analyze the Greek accounting system and its features like the legal system, the taxation, the creative accounting the role of culture and the banking system. The legal system of Greece belongs to the code law family. Historically, the Greek accounting and commercial law have been heavily influenced by various French events and facts. In the Greek listed companies, the ownership concentration is high and the owners are directly involved in business administration. Therefore, they are able to watch and to motivate the staff without the need for programs of supply incentives. The tax system in Greece is a system of conflicting laws, judgments and ministerial decisions, which they attribute to special interests. Company law and tax law are in conflict and accountants tend to follow the latter. Greece (together with Austria) is classifying as the country (by total of 31) with the highest rank in profit manipulation. We are trying to report and analyze the concept and content of International Accounting Standards and in addition, we refer to the Greek Accounting Standards (GAAP) and fully analyze their content as defined by the relevant legislation of the country.
Highlights
Two accounting models have been developed in the western world
In countries where the role of the state in the economy was limited (Common law), the AngloSaxon model was developed, while in the countries where the state had developed an important role in the economy (Code law), the French-German accounting model was adopted
Depreciation may be calculated based on the estimated useful economic life of assets instead of deemed tax depreciation rates applicable for tax purposes only on Assets can be subject to impairment Leases are categorized as financial or operating, depending on the economic substance criteria set by the International Financial Reporting Standards (IFRS) and reflected in tax law Provisions for employees’ severance indemnity are measured either based on the nominal amounts according to employment legislation or based on accepted actuarial studies Establishment expenses, R&D expenses and income tax constitute elements of the P/L statement
Summary
Two accounting models have been developed in the western world. In countries where the role of the state in the economy was limited (Common law), the AngloSaxon model was developed, while in the countries where the state had developed an important role in the economy (Code law), the French-German accounting model was adopted. The role of the code law system is not limited to the influence it has on accounting standards It affects the corporate governance model which was developed at the same time as accounting standards and disclosure systems in these countries. Ball et al (2000) argue that in the code-law countries, a governance model with the involvement of "stakeholders" is likely to be observed, composed of executives, employees, government and banks (as shareholders or lenders) as key contractors The interest in this model of government is that the demand for disclosure of accounting information is decreasing because the representatives of "stakeholders" participate in it.
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
