Accounting Systems and Classifications: The Case of Greece

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.