Importance of International Financial Reporting Standards (IFRS) in Australia and New Zealand

Abstract
This paper fundamentally signifies the importance of International Financial Reporting Standards
(IFRS), which is viewed as one of the most essential choices throughout the entire existence of
Australian standard-setting. Considering the standard setters in Australia, they were forcefully
drawn in with the idea of harmonization of the standards all around, their accounting standards
technique in 2000 fortified residential caution. The examination further investigates the
difficulties faced by associations in Australia in the reception of IFRS. The given paper
fundamentally looks at the handiness of financial reporting regulations for Australia and New
Zealand to be specific to the Conceptual Framework and the selection of IFRSs. It also exhibits
key points of embracing the IFRSs. The best exhibitors to the national accounting setting bodies
and institutions for both the nations could be the transitional issues, difficulties, benefits, and the
prescribed future headings.
Table of Content

Implementation of IFRS 5
Transitional issues 7
Challenges Faced While Adopting IFRS 8
Benefits of Adopting IFRS 9
Similarities and Differences in the Adoption of IFRSs 11
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Introduction
Later in the twentieth century, the term globalization had become the cause of the major
unavoidable transitions universally, also including the neoliberal thoughts being broadly
classified as the premise of western political, monetary, and social practices. Daske Hail Leuz
and Verdi 2008 contend that the new widespread society featured the rise of the arrangement of
supranational administration associations like IASB, which signalled numerous country states
losing power. Pointers in the Australian case extended to a scope of monetary approach changes,
which changed the corporate rules that commanded to have a solitary arrangement of accounting
standards universally. Like;
● International Accounting Standards (IAS) are Standards declared before first April 2001
which are still valid.
● Standards interpretation committee (SIC) by Standard Interpretation Committee
preceding first April 2001 not yet repulsed and
● International financial reporting committee (IFRIC) Interpretations given by the said
ommittee.
Aghator and Adeyemi (2009) opined that International Financial Reporting Standards (IFRS)
alludes to a progression of accounting declarations distributed by the International Accounting
Standards Board to help in readiness of financial proclamations all through the globe, to deliver
and introduce high caliber, similar and straightforward financial explanations.
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The steep reception of IFRS all around since the start of the new thousand years can be
considered as a piece of a far-reaching wave of standardization that has been considered in the
last few years (Rodrigues and Craig, 2007, p740). In the event of stabilization and the
standardization of financial reporting, Globalization had been considered to be an incredible job
which also created the development of interrelationship between country states and the ascent of
new types of international administration. International Accounting Standards Board (IASB), an
association set up in London was in the front line in creating and advancing a solitary
arrangement of financial accounting standards that ought to be perceived comprehensively. The
International Accounting Standards Committee (IASC) an ancestor to the IASB was established
in the year 1973, when an Australian expert accounting affiliations had joined the space setting
International accounting standard. This coming together of the australian experts and the space
setting International accounting standard was the turnaround when Australian experts in
Accountancy as consistently worked connected at the hip with other international standard-
setting bodies in guaranteeing that there is long haul synchronization of approaches and
converging of Australian accounting standards as per the necessary international standards.
Positive Accounting Theory (PAT) for financial reporting
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