This research has objectives to investigate political, social, economic and cultural factors in accounting

development in Western, Asian and Islamic countries as well as to study the impact to Islamic financial

institutions. Using Interactiv

e Analysis as the research method, this paper focuses on Indonesia, Britain

and Saudi Arabia, as the countries of analysis due to their signifiant growth in Islamic finance. The analysis

shows that accounting development in all countries under study is inf

luenced by several factors such as

history, politics and culture. These factors also lead the countries’ policies how to develop shariah based

accounting