The chapter identifies seven economic, historical, and/or institutional variables that influence accounting development: sources of finance, legal system, taxation, political and economic ties, inflation, level of economic development, and education level.

Required:
a. Consider the case of Taiwan. Describe it on the basis of these seven dimensions. Web sites include the Encyclopaedia Britannica Online (www.eb.com) and The World Factbook (www.cia.gov/library/publications/the-world-factbook).
b. Using this description, predict a general profile of financial accounting in Taiwan.
c. Go to the library and find a reference that describes accounting in Taiwan. Is your prediction accurate? Why or why not?