Domestic Model of Accounting Development Based on the Contingency Theory

Dealing with the issue of Accounting Development necessitates an internal and external look at the profession, which is able to examine “accounting” from different dimensions. Accounting Development can be evaluated in various forms. One of such forms of evaluation is the use of the Contingency Theory that says there is no single, universal or ideal form for the system of accounting information; in other words, specific conditions and situations will dictate the best-fit system choice in those conditions and situations. Thus, this study aimed at suggesting a domestic model of Accounting Development based on the Contingency Theory. Here, the mixed qualitative-quantitative method was used to suggest the research model. In the qualitative part, questions were given to the experts of the study to answer via the snowball sampling. In the quantitative part, the structural equations approach as well as the confirmatory factor analysis was used. In the first phase, 51 concepts within the framework of 5 categories were extracted from the interview with experts. In the second phase, the concepts and the categories were decreased to 41 and 5 respectively. The categories included political, economic, organizational, environmental and professional factors. The results from the factor interrelationships as well as their impact on Accounting Development indicated that among different factors, the environmental factor with coefficient of 0.302 exerted the highest impact. As is emphasized in the Contingency Theory, environmental factors are considered among the most important factors that affect Accounting Development in all countries.