Australia and Hong Kong have developed unique cultural influences that shape the means in 3 which local firms choose to operate. As supported by Nobes and Perramon (2013), these 4 influences have consequently had differing implications on their firms’ accounting practices, 5 despite the commonality of adopting similar accounting principles. Through cultural 6 dimensions, this report will evaluate the extent to which culture explains the differences in 7 accounting practices, particularly between Fujikon Industrial Holdings Ltd., a small firm on 8 the HKSE, and Fortescue Metals Group, a large Australian company. 9 Cultural Dimension of Incorporation 10 As stated by Nobes & Kvaal (2010), the choice of country of incorporation is heavily 11 influenced by cultural factors, often of a political nature. This is reinforced by Fujikon, which 12 have their head office located in Hong Kong but country of incorporation as Bermuda (see 13 line 7 on page 4 in Appendix B). This is due to Hong Kong’s history of political instability, 14 especially prior to the transfer of sovereignty in 1997, when companies were concerned 15 whether the new Chinese government would keep Hong Kong capitalist and thus many 16 companies moved their corporate location overseas (Carroll et al. 2014). Furthermore, 17 Bermuda’s status as a tax haven is indicative of economic factors influencing Fujikon to 18 incorporate overseas. Consequently, the cultural implications are evident in their annual 19 report, with their decision to be in accordance with the Hong Kong Financial Reporting 20 Standards instead of the IFRS, as permitted by the IASB due to being incorporated outside of 21 Hong Kong (IFRS 2014).