Impacts of IFRS adoption in Australia
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The implementation of International Financial Reporting Standard (IFRS) has resulted in the improvement of accounting quality. The IRFS implementation in financial reports since the economic standard creates the basis of all reporting in both profit and non-profit sectors. The report outlines the effects impacted by the adoption of IFRS in the statements of finance which has resulted in improvement in the quality of accounting. The report also explains the impact of IFRS on AASB as well as financial reporting.
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Running Head: IMPLICATIONS OF INTERNATIONAL ACCOUNTING IN AUSTRALIA 1
Impacts of IFRS adoption in Australia
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Impacts of IFRS adoption in Australia
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Institution
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IMPLICATION OF INTERNATIONAL ACCOUNTING IN AUSTRALIA 2
Executive summary
The implementation of International Financial Reporting Standard (IFRS) has resulted in
the improvement of accounting quality. The IRFS implementation in financial reports since the
economic standard creates the basis of all reporting in both profit and non-profit sectors. The
report outlines the effects impacted by the adoption of IFRS in the statements of finance which
has resulted in improvement in the quality of accounting. The report also explains the impact of
IFRS on AASB as well as financial reporting. These impacts have explicitly been focused on the
public companies that operate under the regulation of AASB. Finally, the report has outlined
areas where the adoption of the IFRS has been a success as well as those areas that its impacts
have not been recognized.
Introduction
The article was published at AASB research center in October 2016.
Research paper on international accounting: The various effects of IRFS adoption of
international reports in Australia. The article of this paper can be retrieved from the link which
follows.
Http://www.aasb.gov.au/admin/file/content102/c3/
AASB_RR12_10_16_IFRS_Lit_Review.pdf.
The group presentations emphases on various implications of the IRFS implementation in
financial reports since the economic standard creates the basis of all reporting in both profit and
non-profit sectors. The consequences that the International Reporting Financial Standards has
enforced in the various financial organization are in the statements of the financial accounts.
These statements can be concerning economic and audit reports and all other reports that may be
of the kind. The group presentations are based on the critical findings computed from the
Executive summary
The implementation of International Financial Reporting Standard (IFRS) has resulted in
the improvement of accounting quality. The IRFS implementation in financial reports since the
economic standard creates the basis of all reporting in both profit and non-profit sectors. The
report outlines the effects impacted by the adoption of IFRS in the statements of finance which
has resulted in improvement in the quality of accounting. The report also explains the impact of
IFRS on AASB as well as financial reporting. These impacts have explicitly been focused on the
public companies that operate under the regulation of AASB. Finally, the report has outlined
areas where the adoption of the IFRS has been a success as well as those areas that its impacts
have not been recognized.
Introduction
The article was published at AASB research center in October 2016.
Research paper on international accounting: The various effects of IRFS adoption of
international reports in Australia. The article of this paper can be retrieved from the link which
follows.
Http://www.aasb.gov.au/admin/file/content102/c3/
AASB_RR12_10_16_IFRS_Lit_Review.pdf.
The group presentations emphases on various implications of the IRFS implementation in
financial reports since the economic standard creates the basis of all reporting in both profit and
non-profit sectors. The consequences that the International Reporting Financial Standards has
enforced in the various financial organization are in the statements of the financial accounts.
These statements can be concerning economic and audit reports and all other reports that may be
of the kind. The group presentations are based on the critical findings computed from the
IMPLICATION OF INTERNATIONAL ACCOUNTING IN AUSTRALIA 3
research. The analysis points out on the evidence of IRFS implementation in current Australia.
The study of the results shows that the adoption by various Australian organization of the IRFS
has brought positive impacts to the stakeholders and analysts. The forecasting accuracy and
following of the analyst have also been improved (Brown, 2011).The improvement in value
relevance of the financial reports after the IRFS adoption. Some of the findings stated that there
was an improvement in the quality of accounting while others opposed claiming that the
Australian Generally Accepted Accounting Principles (GAAP) operating system was more
appropriate than IFRS. Some of the findings also suggest that one of the implications of the IRFS
financial reporting has become more accessible to read despite them being too long. With these
findings, a deduction can be made that the adoption of the IRFS in Australia has brought
financial reporting and quality in the business sectors while others have a different confession on
the same. All in all, be it positive or negative effects, the findings have supported the fact that
the board has brought a difference. Some of the implications are discussed below;
The implications of IRFS on Conservatism
Conservatism can be referred as the inclination of organizations to identify bad news in
the incomes in a convenient way than the appreciation of the profits. By this, it means that the
firms tend to recognize losses before the recognition of the real benefits. In accounting,
conservatism can be termed as oversight of timely injuries from the accounts statements at the
correct time. IRFS guidance and the expectations are that, for a business entity to attain control it
has to recognize book value of the liabilities and the assets. Therefore, the moderation can only
be achieved when the under-measured book value of the assets must be of a higher amount than
the over measured value of debts. The attainment of conservatism, therefore, depends on the
research. The analysis points out on the evidence of IRFS implementation in current Australia.
The study of the results shows that the adoption by various Australian organization of the IRFS
has brought positive impacts to the stakeholders and analysts. The forecasting accuracy and
following of the analyst have also been improved (Brown, 2011).The improvement in value
relevance of the financial reports after the IRFS adoption. Some of the findings stated that there
was an improvement in the quality of accounting while others opposed claiming that the
Australian Generally Accepted Accounting Principles (GAAP) operating system was more
appropriate than IFRS. Some of the findings also suggest that one of the implications of the IRFS
financial reporting has become more accessible to read despite them being too long. With these
findings, a deduction can be made that the adoption of the IRFS in Australia has brought
financial reporting and quality in the business sectors while others have a different confession on
the same. All in all, be it positive or negative effects, the findings have supported the fact that
the board has brought a difference. Some of the implications are discussed below;
The implications of IRFS on Conservatism
Conservatism can be referred as the inclination of organizations to identify bad news in
the incomes in a convenient way than the appreciation of the profits. By this, it means that the
firms tend to recognize losses before the recognition of the real benefits. In accounting,
conservatism can be termed as oversight of timely injuries from the accounts statements at the
correct time. IRFS guidance and the expectations are that, for a business entity to attain control it
has to recognize book value of the liabilities and the assets. Therefore, the moderation can only
be achieved when the under-measured book value of the assets must be of a higher amount than
the over measured value of debts. The attainment of conservatism, therefore, depends on the
IMPLICATION OF INTERNATIONAL ACCOUNTING IN AUSTRALIA 4
calculation of both under and over measured underlying book value of both the assets and
liabilities in all the organizations.
Financial reporting in Australia over the times before the enactment of the standard board
of IRFS has become conservative. Unconditional conservatism has therefore increased with a
decreased conditional conservatism after the adoption of the IRFS. For a compelling economic
analysis consequently, financial statements users such as the managers and all investors are
required to enhance changes in the conservatism ideal.
Implications of IFRS on the financial report
IFRS has imposed effects in the financial report is evident in three economic aspects.
These aspects are the quality of the financial statements, result in the comparability of the
accounts of finance in the international cross-cultural market as well as the assembly of both
business analysts and stakeholders.
The implication of IFRS on the quality of accounting
The impact on the accounting quality of the financial report majors on the earnings,
conservatism, report reliability, evaluation of the revenues and expenses, accrual reliability as
well as assets impairments recognition (Chen, Jiang & Lin, 2010). The implication of the
financial report aims at the economic consequences of the variations to the treatment
benevolence and the manner in which various financial organizations have an account on
different firm's amalgamation. The differences in the quality of statements in the financial reports
array from the difference in individual standards to change in deferred taxes in the organization
and the intangible assets. The research, therefore, can deduce that various organizations have the
goodwill in the adoption of the IRFS guidelines in achieving quality accounting across multiple
business entities. A suggestion is outlined that the changes lead to a positive effect of an increase
calculation of both under and over measured underlying book value of both the assets and
liabilities in all the organizations.
Financial reporting in Australia over the times before the enactment of the standard board
of IRFS has become conservative. Unconditional conservatism has therefore increased with a
decreased conditional conservatism after the adoption of the IRFS. For a compelling economic
analysis consequently, financial statements users such as the managers and all investors are
required to enhance changes in the conservatism ideal.
Implications of IFRS on the financial report
IFRS has imposed effects in the financial report is evident in three economic aspects.
These aspects are the quality of the financial statements, result in the comparability of the
accounts of finance in the international cross-cultural market as well as the assembly of both
business analysts and stakeholders.
The implication of IFRS on the quality of accounting
The impact on the accounting quality of the financial report majors on the earnings,
conservatism, report reliability, evaluation of the revenues and expenses, accrual reliability as
well as assets impairments recognition (Chen, Jiang & Lin, 2010). The implication of the
financial report aims at the economic consequences of the variations to the treatment
benevolence and the manner in which various financial organizations have an account on
different firm's amalgamation. The differences in the quality of statements in the financial reports
array from the difference in individual standards to change in deferred taxes in the organization
and the intangible assets. The research, therefore, can deduce that various organizations have the
goodwill in the adoption of the IRFS guidelines in achieving quality accounting across multiple
business entities. A suggestion is outlined that the changes lead to a positive effect of an increase
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IMPLICATION OF INTERNATIONAL ACCOUNTING IN AUSTRALIA 5
intangible assets of the organization. The result enacts an increase in real assets following the
measurement of the purchase price. The assets were regarded identifiable from the amalgamation
of the firms which means that the proportion percentage of the purchase price was not considered
before the adoption of the IRFS in most organizations. This also means that currently, post-
acquisition of performance must be enhanced by the business (Chen, Tang, Jiang& Lin, 2010)
Many firms fail to acknowledge impairment of assets under IRFS, but the recognition is
available in the standard report. In this extent, therefore, business entities ought to recognize the
requirements in the assets impairment. Studies of the research show that the relative voluntary
adoption of the guidelines from the IRFS affects the quality of the report positively in that an
organization which takes in the standards voluntarily benefit. A firm which receives the changes
out of effective means does not acquire the desired goals. It is therefore advisable to all firms to
deliberately with no effective measures used to adopt the IRFS for the achievement of the overall
benefit of the firm including the attainment of desired results (Doupnik, & Perera, 2011).
Decision making is also part of ‘the amplification of the IRFS in financial reporting
quality. In most organizations, decisions are made based on the financial statements in the firm
by the managers a requirement by the standards. The standards, therefore, enable the firm to be
aware of the importance of the financial statements and therefore those in charge ought to give
clear financial statements for the overall easiness of decision making (Guthrie & Pang, 2013).
The requirements of the financial statement according to the IRFS are outlined to obtain
necessary economic attributes of the organization. Decision made basing the arguments on the
comments are evident and with reasons thus avoiding irrelevant choices that would affect the
business later (Epstein & Jermakowicz, 2010).
intangible assets of the organization. The result enacts an increase in real assets following the
measurement of the purchase price. The assets were regarded identifiable from the amalgamation
of the firms which means that the proportion percentage of the purchase price was not considered
before the adoption of the IRFS in most organizations. This also means that currently, post-
acquisition of performance must be enhanced by the business (Chen, Tang, Jiang& Lin, 2010)
Many firms fail to acknowledge impairment of assets under IRFS, but the recognition is
available in the standard report. In this extent, therefore, business entities ought to recognize the
requirements in the assets impairment. Studies of the research show that the relative voluntary
adoption of the guidelines from the IRFS affects the quality of the report positively in that an
organization which takes in the standards voluntarily benefit. A firm which receives the changes
out of effective means does not acquire the desired goals. It is therefore advisable to all firms to
deliberately with no effective measures used to adopt the IRFS for the achievement of the overall
benefit of the firm including the attainment of desired results (Doupnik, & Perera, 2011).
Decision making is also part of ‘the amplification of the IRFS in financial reporting
quality. In most organizations, decisions are made based on the financial statements in the firm
by the managers a requirement by the standards. The standards, therefore, enable the firm to be
aware of the importance of the financial statements and therefore those in charge ought to give
clear financial statements for the overall easiness of decision making (Guthrie & Pang, 2013).
The requirements of the financial statement according to the IRFS are outlined to obtain
necessary economic attributes of the organization. Decision made basing the arguments on the
comments are evident and with reasons thus avoiding irrelevant choices that would affect the
business later (Epstein & Jermakowicz, 2010).
IMPLICATION OF INTERNATIONAL ACCOUNTING IN AUSTRALIA 6
IRFS adoption by the firms has also led to the establishment of earning management. The
stability has been achieved since the set standards demand ethical behaviors and abilities in
administration. Therefore, the rules require quality and professionalism performance by the
managers in the accounting sector. For instance, a company whose managers who voluntarily
accept the adoption of the regulations, the management of the company tends to be more
comfortable. With an achieved performance of the managers, the stability of the earnings is also
enhanced since an account can be drafted out of the same. The accountability of the firm is based
on the manager's ethical behaviors (Godfrey, Hodgson, Hamilton & Holmes, 2010).
Accounting of numbers is directly affected by the type of the empirical method used, and
it depends on the kind of IRFS technique of choice. A choice made strategically increases the
price of the accounting numbers. A company that makes its decisions based on the IFRS
standards obtain strategic and organized accounting of amounts. The success of a business
depends on the type of empirical method used, and thus the IFSR standards offer the best
techniques depending on the numbers being accounted for. In this case, for an organization to be
termed as successful, the firm ought to have an appropriate choice of empirical method. With
this model, a firm has assured the stability of prices in the accounting of numbers (He, & Evans,
2012).
With the adoption of IRFS, the value of relevance has also improved in accounting
information. Firms are in a tendency to apply the IRFS especially when the firm engages in
various methods in making the findings of the company value. The calculation of the relevance
of value done based on the evaluation of linear equity methods equates the price of the stock and
value of the market on the two primary variables of financing (Van Greuning, Scott &
Terblanche, 2011). The pair of economic variables is outlined as earnings created per share and
IRFS adoption by the firms has also led to the establishment of earning management. The
stability has been achieved since the set standards demand ethical behaviors and abilities in
administration. Therefore, the rules require quality and professionalism performance by the
managers in the accounting sector. For instance, a company whose managers who voluntarily
accept the adoption of the regulations, the management of the company tends to be more
comfortable. With an achieved performance of the managers, the stability of the earnings is also
enhanced since an account can be drafted out of the same. The accountability of the firm is based
on the manager's ethical behaviors (Godfrey, Hodgson, Hamilton & Holmes, 2010).
Accounting of numbers is directly affected by the type of the empirical method used, and
it depends on the kind of IRFS technique of choice. A choice made strategically increases the
price of the accounting numbers. A company that makes its decisions based on the IFRS
standards obtain strategic and organized accounting of amounts. The success of a business
depends on the type of empirical method used, and thus the IFSR standards offer the best
techniques depending on the numbers being accounted for. In this case, for an organization to be
termed as successful, the firm ought to have an appropriate choice of empirical method. With
this model, a firm has assured the stability of prices in the accounting of numbers (He, & Evans,
2012).
With the adoption of IRFS, the value of relevance has also improved in accounting
information. Firms are in a tendency to apply the IRFS especially when the firm engages in
various methods in making the findings of the company value. The calculation of the relevance
of value done based on the evaluation of linear equity methods equates the price of the stock and
value of the market on the two primary variables of financing (Van Greuning, Scott &
Terblanche, 2011). The pair of economic variables is outlined as earnings created per share and
IMPLICATION OF INTERNATIONAL ACCOUNTING IN AUSTRALIA 7
book value per share. The amount calculated determine the value of accounting of that particular
company. A firm which wishes to thrive comfortably in competition field in Australia in a
similar stock market, adoption of the IRFS standards as an improving model for accounting
quality is advised.
Accrual reliability has reduced in Australian organization after being subjected to the
involuntary adoption of the IRFS standards. The decline is as a result of the mandatory
implementation of the set ethics. For an organization to enjoy benefits impacts, the adoption of
the rules ought to be voluntary to enhance safety and other essential accounting aspects
(Hellmann, Perera & Patel, 2010).
Implication on earning management
Regarding this paper, Corporation should implement the use of IRFS as of significant
effect. Incidences of small lose turned out to be low due to the implementation of the standards.
Consequently, the corporations' income has greatly improved and become stable. Consistency is
thus clear evidence from the GAAP. This denotes that for the firm benefit profits to be at a
standstill, it is recommendable for each firm to use the IFRS in accounting (Iatridis& Rouvolis,
2010)
Accounting standards have greatly improved through the implementation of the IFRS,
and this has improved the relevance value in accounting companies. This denotes that incomes
are much stable and of significant value. According to numerous Australian companies, the
significant capacity of the equity book has greatly shown stability over the implementation
period. The outcomes imply that the value relevance of the shareholders' equity remains still
throughout the evolution period. This stability shows the significance of value relevance in most
Australian firms regarding accounting standards (Hellmann, Perera & Patel, 2010).
book value per share. The amount calculated determine the value of accounting of that particular
company. A firm which wishes to thrive comfortably in competition field in Australia in a
similar stock market, adoption of the IRFS standards as an improving model for accounting
quality is advised.
Accrual reliability has reduced in Australian organization after being subjected to the
involuntary adoption of the IRFS standards. The decline is as a result of the mandatory
implementation of the set ethics. For an organization to enjoy benefits impacts, the adoption of
the rules ought to be voluntary to enhance safety and other essential accounting aspects
(Hellmann, Perera & Patel, 2010).
Implication on earning management
Regarding this paper, Corporation should implement the use of IRFS as of significant
effect. Incidences of small lose turned out to be low due to the implementation of the standards.
Consequently, the corporations' income has greatly improved and become stable. Consistency is
thus clear evidence from the GAAP. This denotes that for the firm benefit profits to be at a
standstill, it is recommendable for each firm to use the IFRS in accounting (Iatridis& Rouvolis,
2010)
Accounting standards have greatly improved through the implementation of the IFRS,
and this has improved the relevance value in accounting companies. This denotes that incomes
are much stable and of significant value. According to numerous Australian companies, the
significant capacity of the equity book has greatly shown stability over the implementation
period. The outcomes imply that the value relevance of the shareholders' equity remains still
throughout the evolution period. This stability shows the significance of value relevance in most
Australian firms regarding accounting standards (Hellmann, Perera & Patel, 2010).
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IMPLICATION OF INTERNATIONAL ACCOUNTING IN AUSTRALIA 8
Another implication is that the disclosure of deferred taxes is essential if they feature into
one critical element. This is due to the effect that from a five income statement, only the
revelation of one is attributable to one aspect. These, therefore, means that the non-revaluation
balance sheet element is not essential or value relevant. The substantial balances are the deferred
taxes that has more than one component, and components includes, revaluation of PPE and
equity accounted incomes.
The IFRS enables a firm to conduct a deferred tax assessment on values of a balance
sheet. The partial tax process is mainly preferred by the reflecting investors who view it as a real
liability on the asset revaluation. Thus, as stakeholders, they permit the valuation of both
liabilities before selecting a firm to invest in (Stevenson, 2012).
Financial readability
Financial readability mainly targets the length and difficulties of the financial reports.
These reports should be modest to the operators for them to be able to make a correct economic
and financial choice. The IFRS implementation on financial readability has great significance as
follows:
Accounting value and audit committee
To certify accrual standards and better the earning management, the IFRS ensures that the
audit committee should have more associates and more accounting expertise. On the other hand,
the audit committee associates should have more and regular meetings to attain the set goals and
objectives (Nobes, 2014).
Reports have played an essential role in giving a detailed study on financial outcomes.
Consequently, the IFRS has made the stories more legible by accumulating three accounting
policies. They include intangible assets, financial gadgets and a summary of accounting
Another implication is that the disclosure of deferred taxes is essential if they feature into
one critical element. This is due to the effect that from a five income statement, only the
revelation of one is attributable to one aspect. These, therefore, means that the non-revaluation
balance sheet element is not essential or value relevant. The substantial balances are the deferred
taxes that has more than one component, and components includes, revaluation of PPE and
equity accounted incomes.
The IFRS enables a firm to conduct a deferred tax assessment on values of a balance
sheet. The partial tax process is mainly preferred by the reflecting investors who view it as a real
liability on the asset revaluation. Thus, as stakeholders, they permit the valuation of both
liabilities before selecting a firm to invest in (Stevenson, 2012).
Financial readability
Financial readability mainly targets the length and difficulties of the financial reports.
These reports should be modest to the operators for them to be able to make a correct economic
and financial choice. The IFRS implementation on financial readability has great significance as
follows:
Accounting value and audit committee
To certify accrual standards and better the earning management, the IFRS ensures that the
audit committee should have more associates and more accounting expertise. On the other hand,
the audit committee associates should have more and regular meetings to attain the set goals and
objectives (Nobes, 2014).
Reports have played an essential role in giving a detailed study on financial outcomes.
Consequently, the IFRS has made the stories more legible by accumulating three accounting
policies. They include intangible assets, financial gadgets and a summary of accounting
IMPLICATION OF INTERNATIONAL ACCOUNTING IN AUSTRALIA 9
procedure. These have implicated readability by giving detailed information and prolonging
discoveries to the stakeholders.
Impact of IFRS on Australia economy
IRFS has dramatically improved the standards of accounting in Australia. This is as a
result of the AASB deferred tax worthiness in most companies that match with the IFRS
principles. Hence most corporates approved the revaluation balance sheet with least encounters
and the taxes accredited to the non- revaluation balance sheet was of no significance. Despite the
IFRS having its laws and regulations, most of the Australian companies have not conformed to
it. Corporates consequently fail to recognize the approved rules on assets impairments despite the
assets increase (Iatridis, & Rouvolis, 2010)
The certification of the IFRS by the accounting culture in Australia boosted its financial
statement thus attracting more investors. This is as a result of a healthy relationship between the
goodwill impairment and the investment opportunity. This laid an essential economic feature that
made the Australian build the trust of accountancy throughout the new regime than the prior
GAAP.
The adoption of IFRS led to the decline of accrual reliability of the Australian companies.
This was a result of the financial accruals, working capital, and non-current accruals. Therefore,
the transaction between significance and safety remained constant as most companies boosted
the relevant accounting at the expense of reliability.
The adoption of IFRS helped in attaining consistent information on the intangible and
tangible assets. Since most of the Australian company assets were capitalized, The IFRS was
implemented to identify the potential resource that will define the holdings that regarding their
value and significance (Kim, Tsui & Cheong, 2011).
procedure. These have implicated readability by giving detailed information and prolonging
discoveries to the stakeholders.
Impact of IFRS on Australia economy
IRFS has dramatically improved the standards of accounting in Australia. This is as a
result of the AASB deferred tax worthiness in most companies that match with the IFRS
principles. Hence most corporates approved the revaluation balance sheet with least encounters
and the taxes accredited to the non- revaluation balance sheet was of no significance. Despite the
IFRS having its laws and regulations, most of the Australian companies have not conformed to
it. Corporates consequently fail to recognize the approved rules on assets impairments despite the
assets increase (Iatridis, & Rouvolis, 2010)
The certification of the IFRS by the accounting culture in Australia boosted its financial
statement thus attracting more investors. This is as a result of a healthy relationship between the
goodwill impairment and the investment opportunity. This laid an essential economic feature that
made the Australian build the trust of accountancy throughout the new regime than the prior
GAAP.
The adoption of IFRS led to the decline of accrual reliability of the Australian companies.
This was a result of the financial accruals, working capital, and non-current accruals. Therefore,
the transaction between significance and safety remained constant as most companies boosted
the relevant accounting at the expense of reliability.
The adoption of IFRS helped in attaining consistent information on the intangible and
tangible assets. Since most of the Australian company assets were capitalized, The IFRS was
implemented to identify the potential resource that will define the holdings that regarding their
value and significance (Kim, Tsui & Cheong, 2011).
IMPLICATION OF INTERNATIONAL ACCOUNTING IN AUSTRALIA 10
Most of the Australia Corporates adopted IFRS to measure the readability of financial
statement. This was attained by assessing the length of financial report. The measuring styles
included, the Gunning Fox Index which measured the density of the account and the number of
words determined the range of economic news in an era.
Conclusion
In summary, the results of IFRS is thus revealed in the improvement of value relevance
financial reports, comparability of Australian entity although the report the Australian economy
has advanced from the IFRS implementation. This is due to the measures put in place to improve
the accounting quality thus enhancing the credibility of firms and some of the research studies
have focused on the benefits of the adoption of IFRS in all companies, the truth is that not all
companies have benefited on the same. The report also focuses on the voluntary adoption of the
IFRS to the standards implementation tend to incur positive effects compared to mandatory
approval. The fewer benefits can also because the introduction of forceful adoption of the
standards by all the firms create a challenge of differentiating the potential effect of the
confirmation from the impacts of other variations from which has implications in the analysis are
also deduced (Iatridis, 2010).
Most of the Australia Corporates adopted IFRS to measure the readability of financial
statement. This was attained by assessing the length of financial report. The measuring styles
included, the Gunning Fox Index which measured the density of the account and the number of
words determined the range of economic news in an era.
Conclusion
In summary, the results of IFRS is thus revealed in the improvement of value relevance
financial reports, comparability of Australian entity although the report the Australian economy
has advanced from the IFRS implementation. This is due to the measures put in place to improve
the accounting quality thus enhancing the credibility of firms and some of the research studies
have focused on the benefits of the adoption of IFRS in all companies, the truth is that not all
companies have benefited on the same. The report also focuses on the voluntary adoption of the
IFRS to the standards implementation tend to incur positive effects compared to mandatory
approval. The fewer benefits can also because the introduction of forceful adoption of the
standards by all the firms create a challenge of differentiating the potential effect of the
confirmation from the impacts of other variations from which has implications in the analysis are
also deduced (Iatridis, 2010).
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IMPLICATION OF INTERNATIONAL ACCOUNTING IN AUSTRALIA 11
References
Brown, P., 2011. International financial reporting standards: what are the benefits?. Accounting
and business research, 41(3), 269-285.
Chen, H., Tang, Q., Jiang, Y. and Lin, Z., 2010. The role of international financial reporting
standards in accounting quality: Evidence from the European Union. Journal of international
financial management & accounting, 21(3), 220-278.
Doupnik, T. and Perera, H., (2011. International accounting.
Epstein, B. J. and Jermakowicz, E. K., 2010. WILEY Interpretation and Application of
International Financial Reporting Standards 2010. John Wiley & Sons.
Godfrey, J., Hodgson, A., Tarca, A., Hamilton, J. and Holmes, S., 2010. Accounting theory.
Guthrie, J. and Pang, T. T., 2013. Disclosure of Goodwill Impairment under AASB 136 from
2005–2010. Australian Accounting Review, 23(3), 216-231.
He, R., He, L. and Evans, E., 2012. The impact of AASB 8 on segment disclosure practices and
analysts’ information environment. Working paper (Macquarie University, North Ryde,
Australia, 2012).
Hellmann, A., Perera, H. and Patel, C., (2010). Contextual issues of the convergence of
International Financial Reporting Standards: The case of Germany. Advances in Accounting,
26(1), 108-116.
Iatridis, G., 2010. International Financial Reporting Standards and the quality of financial
statement information. International review of financial analysis, 19(3), 193-204.
References
Brown, P., 2011. International financial reporting standards: what are the benefits?. Accounting
and business research, 41(3), 269-285.
Chen, H., Tang, Q., Jiang, Y. and Lin, Z., 2010. The role of international financial reporting
standards in accounting quality: Evidence from the European Union. Journal of international
financial management & accounting, 21(3), 220-278.
Doupnik, T. and Perera, H., (2011. International accounting.
Epstein, B. J. and Jermakowicz, E. K., 2010. WILEY Interpretation and Application of
International Financial Reporting Standards 2010. John Wiley & Sons.
Godfrey, J., Hodgson, A., Tarca, A., Hamilton, J. and Holmes, S., 2010. Accounting theory.
Guthrie, J. and Pang, T. T., 2013. Disclosure of Goodwill Impairment under AASB 136 from
2005–2010. Australian Accounting Review, 23(3), 216-231.
He, R., He, L. and Evans, E., 2012. The impact of AASB 8 on segment disclosure practices and
analysts’ information environment. Working paper (Macquarie University, North Ryde,
Australia, 2012).
Hellmann, A., Perera, H. and Patel, C., (2010). Contextual issues of the convergence of
International Financial Reporting Standards: The case of Germany. Advances in Accounting,
26(1), 108-116.
Iatridis, G., 2010. International Financial Reporting Standards and the quality of financial
statement information. International review of financial analysis, 19(3), 193-204.
IMPLICATION OF INTERNATIONAL ACCOUNTING IN AUSTRALIA 12
Iatridis, G., & Rouvolis, S., 2010. The post-adoption effects of the implementation of
International Financial Reporting Standards in Greece. Journal of international accounting,
auditing and taxation, 19(1), 55-65.
Kim, J. B., Tsui, J. S. and Cheong, H. Y., 2011. The voluntary adoption of International
Financial Reporting Standards and loan contracting around the world. Review of Accounting
Studies, 16(4), 779-811.
Kim, J. B., Tsui, J. S. and Cheong, H. Y., 2010. The voluntary adoption of International
Financial Reporting Standards and loan contracting around the world. Review of Accounting
Studies, 16(4), 779-811.
Iatridis, G. and Rouvolis, S., 2010. Does mandatory adoption of International Financial
Reporting Standards in the European Union reduce the cost of equity capital? The accounting
review, 85(2), 607-636.
Nobes, C., 2014. International Classification of Financial Reporting 3e. Routledge.
Stevenson, K. M., 2012. The changing IASB and AASB relationship. Australian Accounting
Review, 22(3), 239-243.
Van Greuning, H., Scott, D. and Terblanche, S., 2011. International financial reporting
standards: a practical guide. World Bank Publications.
Iatridis, G., & Rouvolis, S., 2010. The post-adoption effects of the implementation of
International Financial Reporting Standards in Greece. Journal of international accounting,
auditing and taxation, 19(1), 55-65.
Kim, J. B., Tsui, J. S. and Cheong, H. Y., 2011. The voluntary adoption of International
Financial Reporting Standards and loan contracting around the world. Review of Accounting
Studies, 16(4), 779-811.
Kim, J. B., Tsui, J. S. and Cheong, H. Y., 2010. The voluntary adoption of International
Financial Reporting Standards and loan contracting around the world. Review of Accounting
Studies, 16(4), 779-811.
Iatridis, G. and Rouvolis, S., 2010. Does mandatory adoption of International Financial
Reporting Standards in the European Union reduce the cost of equity capital? The accounting
review, 85(2), 607-636.
Nobes, C., 2014. International Classification of Financial Reporting 3e. Routledge.
Stevenson, K. M., 2012. The changing IASB and AASB relationship. Australian Accounting
Review, 22(3), 239-243.
Van Greuning, H., Scott, D. and Terblanche, S., 2011. International financial reporting
standards: a practical guide. World Bank Publications.
1 out of 12
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