How do societal values and accounting values interact with each other to establish accounting systems?

Question

Quizplus · Accepted Answer

Accounting systems are shaped by both societal values and accounting values. Societal values, such as the importance placed on transparency and accountability, can influence accounting values, such as the focus on accurate financial reporting. These accounting values can then shape the development of accounting systems, which in turn have institutional consequences such as influencing legal systems and capital markets. Therefore, societal values and accounting values interact with each other to establish accounting systems.

How Do Societal Values and Accounting Values Interact with Each