Accounting Standard in Australia

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Accounting Standard in Australia
Summary
According to the four articles, it was discovered that being an Australia government agency, the
AASB (Australian Accounting Standards Board) is responsible for developing and maintaining
the financial reporting standards. These standards are applied in both the private and public
entities. The AASB helps to facilitate the participation of the Australian community in standard
setting globally.
Common themes across the articles
The global financial standards are contributed by different bodies and AASB being one of them.
The AASB plays an important role in Australian Accounting Standards, which include
Interpretations that are applied by governments in preparation of financial statements for the
whole of government and the General Government Sector (GGS).
The Australian Accounting Standards has incorporated requirements which are specifically
applicable to the Australian entities. These requirements are designed in such a way that, they are
either restricted to the non-profit or the public sectors. (Robb, Rohde and Green, 2014)
Originally, the Australian Accounting Standards was not applicable to the bodies which are
regulated under the Corporation Law while the Australian Accounting Standards Board was
applicable to those sectors which were regulated under the Corporations Law.
Primary findings
The accessibility of information related to financial reports has been made more available in the
IFRS compared to the Australian accounting system. It has also reduced the cost of information

processes since most of the processing is done by the IFRS. According to most of the research
findings, the adoption of IFRS in Australia is very appropriate and has been of benefit to
Australian economy and it creates a friendly environment to the foreign investors and analysts
who in turn boosts its economy.
The Monitoring Board, International Financial Reporting Standards (IFRS) Foundation,
International Accounting Standards Board (IASB), IFRS Advisory, and IFRS Interpretations
Committee work together to ensure that there is quality in accounting in Australia. The IRFS acts
as an oversight body of several existing boards that include the IRFS interpretations committee.
Different themes across the four articles
The IFRS foundation works independently and it is not-for-profit private sector organization that
works for the benefit of the public. The main objectives of this body are to focus on high quality,
and to come up with understandable globally accepted international financial reporting standards.
It also enhances the application of the set-up standards, and also accounting on the financial
needs of upcoming economies which includes the small and medium-sized entities (SMEs). This
foundation also ensures the facilitation of IFRSs. (Sims and Cullis, 2009)
The IFRS adoption has been reported as positive by the researches done. It has been said to have
improved the value of importance of accounting reports. It has also been proved to have reduced
the number of firms engaging in earning management roles. There is also evidence that has
supported the IFRS adoption and has reported that this type of regime has improved the quality
of accounting in Australia however some studies state that the measure of accounting quality has
continued to adopt the Australian accounting standards.