Impact of Literature Research on Financial Reporting in Australian Companies

Impact of the findings of literature research on financial reporting process in
Australian Companies

Executive Summary:
A sound accounting policy and accounting standard is essential for a country for the proper
valuation of assets of the business of a country so that a proper valuation of the total GDP of a
country will be done. This report describes that how the limitations of the different accounting
standards that are being followed for accounting the contingent consideration of assets and
goodwill accounting are affecting the accounting regulators, accounting professionals as well as
external investors of the country.

Table of Contents
Introduction:.................................................................................................................................. 4
Body of research:...........................................................................................................................4
a. Reason of selecting the research articles:..................................................................................4
b. The research questions being addressed by the articles:..........................................................5
c. Similarities and difference between the two research studies:.................................................6
d. Implications of the selected research papers for the accountant of Australian companies,
accounting regulators and investors (external user of financial reports)......................................6
Reference:..................................................................................................................................... 9

Introduction:
The report is based on the review of the two chosen articles namely “IFRS 3, IAS 16 and IAS 37:
Contingent Consideration in an Asset Purchase” and “Implications of the IFRS goodwill
accounting treatment”. The first article describes that how the accounting for contingent
assets, that is plant, property and equipment to be done so that proper consideration for the
assets to be purchased can be calculated for payment following the guide lines of the
accounting standards of IFRS 3, IAS 16 and IAS 37
This paper is being published by IFRS discussion group of the Canada wing in order to describe
that how the business organization of the countries like Canada ,Australia that are following the
guidelines of accounting standards of IFRS & IAS should account the consideration payable for
the contingent properties acquired by them.
The second paper describes the impact of conflict that arises due to the differences in
requirements of Australian accounting standards and IFRS regarding goodwill accounting over
the accounting regulators, professional and external investors of Australia (Wines et al., 2007).
Body of research:
a. Reason of selecting the research articles:
Two research articles are being chosen for describing the report. The first research article is
“IFRS 3, IAS 16 and IAS 37: Contingent Consideration in an Asset Purchase” is an article
released by “IFRS group of Canada wing” and the article makes a detailed analysis regarding
how the appropriateness of the accounting standard that will help the business owners to
account the consideration for accounted contingent assets in best possible way and what role
the accounting professionals should play in case of limitations of the accounting standards
(Wines et al., 2007).
Another article that has been used in this report is “Implications of the IFRS goodwill
accounting treatment” and; this is peer reviewed articles that critically examine the impact of