Abstract
Research has shown that the development of accounting tends to be a function of environmental factors. It is influenced by and reflects the unique characteristics of each country's environment. This paper examines the major environmental influences on accounting in Jordan. It describes the cultural, economic, political, educational and professional factors and their effect on the development and practice of financial reporting in Jordan. The paper also examines the current changes promulgated by the government in its bid to liberalize the economy and encourage domestic and foreign investment and how these changes have impacted on financial reporting. [PUBLICATION ABSTRACT]