This report examines the implications of International Financial Reporting Standards (IFRS) adoption in Australia, comparing accounting practices before and after the transition from Generally Accepted Accounting Principles (GAAP) in 2005. It explores the key changes in accounting policies, the impact on local government entities, and the benefits and challenges of IFRS implementation. The report also analyzes the impact of IFRS on the quality of financial reporting, including earnings management, timely loss recognition, and the relevance of value. It concludes by discussing the ongoing challenges and opportunities associated with IFRS adoption in Australia.