Australian Financial Reporting Landscape

This assignment delves into the dynamic realm of financial reporting in Australia. It examines how changes in accounting standards, regulations, and political influences shape the way listed companies report their financial performance. The text discusses the role of organizations like the IASB, AASB, and lobby groups in influencing financial reporting practices. Key topics covered include technical facts driving changes, monitoring and regulation of financial reporting, impact on investment decisions, and the rise of corporate social disclosure in Australia.

Running head: EXTERNAL REPORTING 1
Newsletter
Name:
Institution:
Date:
Regulatory environment and financial reporting
According to International Accounting Standards
Board ( IASB) and the AASB, any changes to a
listed firm on Australian Stock Exchange will be
reflected on the newsletter of the company’s
affected. Any changes and development will lead
to a resultant change in tax policy, the regulations
and the political influences that a company has
(Elliott, 2017).
Changes and Development in Financial
Reporting
The referred changes and development are based
on the following facts;
First, the technical facts where the new issue of
accounting standards and amendments on the ASX
list of rules are meant to change the status of the
listed company. Technical facts will be based on
accounting standard mainly influenced by changes
in account practices but must however be approved
by the IASB or the AASB.Secondly, there are
monitors and regulation that help in financial
reporting. Every rules and regulation affected only
leads to efficient systems of analyzing data.
In order to carry out this calculation, the base must
be determined, for the income statement are the
sales and for the balance sheet the total of the asset,
then the balance of the corresponding state item
must be divided between the base balance and the
result multiplied per 100, so you get a result known
as a trend index(Rayman, 2013).
Impact

EXTERNAL REPORTING 2
It is especially when you want to make an
investment, by becoming the main element of the
whole decision set that interests the investor or who
acquires shares. These evaluation environments
will allow company managers to better identify
where they have problems and to be able to identify
solution alternatives for optimum results(Berger,
2012).
Political influences
In Australia, we have not always realized the
political nature of accounting standards
setting (Greuning, Scott & Terblanche, 2011).
However, Since FASB was formed, any potential
accounting standard is required to go through a
political process for example discussion of the
memorandum, then exposure of the draft before
being implemented. There are various lobby groups
that have influenced certain accounting standards.
Corporate Social Disclosure
Lobby groups have influenced the way reporting is
done in regards to Corporate Social disclosure in
Australia. After a very hard push by the lobby
groups such as the Non Governmental
Organizations in Australia, Many companies have
started including a report on Corporate social
responsibility for the year(Elliott, 2017).. The ASX
has reported that financial reporting has changed
where the companies report to the public what they
have done to leave a positive change to the
environment and also giving back to the
community. This is in accordance with
International Financial Reporting Standards
(IFRS). Another change that has been done in how
companies in the Australian Stock Exchange report
their dividends pay out. After new changes
brought about by the Auditors body companies are
supposed to declare the amount of dividends paid
out to share holders.
Conclusion
In Australia, there has been a conflict between
private sector bodies when it comes to establishing
regulatory arrangements for setting accounting
standards. The two Professional accounting bodies
in the country which are ICAA and ASCPA believe
they have more power to influence any legislation
proposed in adoption of IASC. This goes to show
that the private sector has that they have the
necessary influence to force any desired changes in
how financial reporting is done.

EXTERNAL REPORTING 3
References
Berger, T. (2012).IPSAS explained. Hoboken: John
Wiley & Sons.
ELLIOTT, B. (2017). FINANCIAL ACCOUNTING
AND REPORTING. [Place of publication not
identified]: PEARSON EDUCATION Limited.
Greuning, H., Scott, D., & Terblanche, S.
(2011). International financial reporting
standards. Washington, D.C.: World Bank.
Rayman, R. (2013). Accounting Standards.
Hoboken: Taylor and Francis.