Global Regulation

Running head: GLOBAL REGULATION
Global Regulation
Name of the Student
Name of the University
Author’s Note

1GLOBAL REGULATION
Abstract
The aim of this report is to analyse different aspects of global regulation in the process of
financial reporting. This report sheds light on the aspects of Integrated Reporting. It also
shows the argument regarding the implementation of international standards in the year 2005.
After that, this report discusses about the impact of letting the foreigners set the local
regulations. Based on the whole discussion, this report provides certain recommendation.

2GLOBAL REGULATION
Table of Contents
Introduction................................................................................................................................3
Explanation of Integrated Reporting..........................................................................................3
Arguments regarding the International Standards......................................................................4
Foreigners to Develop Local Regulations..................................................................................6
Good or Bad Side of More Regulation......................................................................................7
Involved Risks in Each Alternatives..........................................................................................9
Recommendation to the Members of AASB...........................................................................10
Conclusion................................................................................................................................11
References................................................................................................................................12

3GLOBAL REGULATION
Introduction
The main motive behind the introduction of accounting worldwide guideline is to
introduce such principles and standards those can be applied for the purpose of financial
reporting of all the countries all over the world (Davies & Green, 2013). Global regulations
play a crucial role in bringing harmony in financial reporting of all the countries in order to
apply the same set of accounting principles and standards in the financial reporting of all
countries (Davies & Green, 2013). This is majorly helpful for the investors all over the world
who want to invest in the foreign countries. However, the regulators are needed to consider
certain crucial aspects at the time of the introduction of new regulation or at the time of the
merger of two of more sets of regulations; such as the cost of compliance, complex nature of
introduced accounting regulation and others (Kalemli‐Ozcan, Papaioannou&Peydro, 2013). It
can be seen from the provided scenario that both the US FASB and London-based IASB have
considered the full amalgamation of their principles for the development of new accounting
and financial reporting standards called Global Accounting Standard Board (GASB).
However, the Australian authorities are not agreed to adopt this new GASB standards due to
the negative impact of these standards on the Australian firms and many other reasons. The
main aim of this study is to discuss about the role of international regulations by considering
the necessary aspects so that Australian Accounting Standard Board (AASB) can make the
right choice about the implementation of new GASB standards.
Explanation of Integrated Reporting
Integrated Reporting (IR) can be regarded as the latest progress in to bringing
improvements in corporate reporting. The main motivation behind the introduction of IR as a
global reporting framework is to engage with the key stakeholders of the companies (De
Villiers, Rinaldi&Unerman, 2014). IIRC provides the needed back-up to IR and IRCC is