International Financial Report Standards: A Critical Review Abstract

Adoption of IFRSs: A Critical
Review

Abstract
International Financial Report Standards that are issued by International Accounting
Standard board to develop better understanding of businesses on global platform. This standards
are issued with a general framework of financial report which should be used to prepare finance
report. This study will be providing brief information of IFRS and conceptual framework that is
proposed by IASB. Importance of IFRS will be covered in report. For Australia and Korea these
IFRS standards will be evaluated and analysed for different aspects like differences, issues,
benefits and transition process using different examples. The adoption process will be studied to
evaluate the implication of standards in Korea and Australia. Various recommendations
suggestion will be provided to improve the adoption process of International financial report
standards.

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1. Conceptual Framework for financial Report......................................................................1
2. Comparing and contrasting the implementations of IFRSs in Korea and Australia..........3
I. Reasons for adoption of IFRSs...........................................................................................3
II. Transitional issue faced ....................................................................................................3
III. Challenges faced by reporting entities.............................................................................4
IV. Benefits of adopting IFRSs by the reporting entities.......................................................5
3. Effectiveness of IFRS in Korea and Australia...................................................................5
4. Recommendations..............................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
International financial reporting standards (IFRS) are the standards which are issued by
the IFRS Foundation and the International Accounting standards Board. The main purpose was
to provide the common global language for the business affairs across the world so that company
accounts are easily understandable as well as comparable. Present report discusses about the
usefulness of the financial reporting regulations for Australian reporting entities and Korean
reporting entities. It also includes the key issues for adopting IFRSs within the two countries and
what are the challenges faced and even the benefits of adopting IFRSs. Present report also
includes the recommendations provided to both the countries for future directions to national
accounting setting bodies.
MAIN BODY
1. Conceptual Framework for financial Report
The conceptual frame work for financial reporting is a basic document that sets
objectives and concepts for general purposes of financial reporting (Yahaya, Kutigi and
Mohammed, 2015). There are different parts of financial report frame.
Through this framework better understanding can be developed for general scenario of business
in nation. Financial report follows different points in report that are- objectives of report,
Qualitative characteristics, financial statement and report entity, elements of financial statement,
recognition and de-recognition , measurements, presentation and disclosure and concept of
capital with capital maintenance.
Framework for Report
Objective provide the information of aims and objective of report to reader. Tow type of
useful characteristics are provided in Qualitative Characteristics which are of fundamental and
enhancing type. The information about different assets, Liabilities, equity, income and expenses,
cash flow, contribution of equity holder and other useful information like methods, assumption
and judgements are explained in in Financial Statement and Reporting Entity. Various entities
like single entity, a portion of an entity, multiple entity, consolidated entity, unconsolidated and
combined are used to prepare financial report of business. Different Elements of Financial
Statement like Asset, equity, income, expenses and liability are considered and explained in
element of report. These elements of Financial report can be classified in two categories that are
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