This article provides an analysis of the regulatory framework of Australia and United Kingdom (UK) in terms of financial reporting. It discusses the problems, working process, and progress towards adopting IFRS in both countries. The main responsibility of developing and presetting the principles and standards of financial reporting lies on the governing agency named Australian Accounting Standard Board (AASB) in Australia and UK and Ireland GAAP in the UK. Both countries have made major progress in the adoption of IFRS for their financial reporting.