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International Financial Reporting Standards (PDF)

   

Added on  2021-05-31

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ANSWERIMPLICATIONS OF INTERNATIONAL ACCOUNTING AUSTRALIA AFTER IFRSPERIODThe financial statements are required to be prepared in accordance with the accounting standardsof the particular specific country. The IFRS has been laid down only to provide the moremeaningful and useful information to the shareholders. In Australia, Australian AccountingStandard Board has been complying by the companies and Australia has been the first to adoptthe IFRS in local government entities (Chua, 2012). The company that has been selected for the purpose of the identifying and discussing theimplications from the adoption of the IFRS is Woolworths Limited. It is the company havingheadquarters in Australia and has been one of the top hundred ASX listed companies. The annualreport for the financial year ending June 2005 and June 2006 have been considered and analysed.In accordance with the AIFRS 1 which deals with the first time of adoption the IFRS, thecompany has restated the figures of the year ending 2005 in the financial statements of the yearending 2006 as it is the relevant period after IFRS.The implications from the adoption of the IFRS are the following:-Comparability – The first implication that has been inferred from the adoption of the IFRS isthat it ensures the comparability of the financial statements of the company across the globe.Prior to the year of 2005, there has been the compliance of different accounting standardwhich usually varies from the country to country. With the adoption of the IFRS thecomparison will be easier. It will not be only for the inter company but also help in the intracompany comparison (Bryce, 2015). For instance in the given case, now the financialstatements of the competitor of the company – Wesfarmers Limited can be easily andmeaningfully compared. It has thus impacted the presentation requirements that have beengiven in the AASB 101 relating to the presentation of the financial statements. Thecomparability will not be only for the figures as stated in the financial statements but also onthe basis of the accounting policies as chosen by the company for instance for the propertyplant and equipment.
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