Implication of International Accounting in Australia after IFRS Period

Running head: THE IMPLICATION OF INTERNATIONAL ACCOUNTING IN AUSTRALIA AFTER IFRS PERIOD
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The Implication of International Accounting in Australia after IFRS Period
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THE IMPLICATION OF INTERNATIONAL ACCOUNTING IN AUSTRALIA AFTER IFRS PERIOD
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Introduction
This research aims at analyzing the consequences of the International Accounting in the
Australian local government entities after the International Finance Reporting Standards (IFRS)
implementation. Our study will entail examining the effects of the international accounting in all
the entities within the entities of Australian local governments after the adoption of the IFRS.
Our research will focus on the significant changes in the AASB (Australian Accounting Standard
Boards) concerning their policies in accounting before the employment the IFRS regime and
after its implementation. The Australian government adopted IFRS in 2004 for its local
governments’ entities, and it was fully operational in the 2005/2006 financial year. We will use
the annual reports of the period before the IFRS’s implementation and the reports after its
implementation. We will then access the effects of IFRS's adoption on the international
accounting practices, focus on the significant changes under the Australian Financial Accounting
Board (AASB) and the accounting policies, and study the contrast before and after International
accounting practices regime.
Collection of data
According to the IFRS and the accounting standards that were already operating, all the
individual units (entities) were crucial in the preparation of good financial records. The entities
of the Australian local government were required to allow AASB to prepare and compare
revenue (earnings), equity, and the value of assets and liabilities before the end of 2005. After
the IFRS became fully operational in the 2005/2006 financial year, it aided in the preparation of

THE IMPLICATION OF INTERNATIONAL ACCOUNTING IN AUSTRALIA AFTER IFRS PERIOD
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the 2006 financial report. Their deviation resulted from a change in accounting policies. We will
compare the account records which both the AASB and the IFRS will prepare for the same set of
local governments’ entities concerning the entities’ revenue and income, changes in equity, and
the values of assets and liabilities (Hanson M. 2006). The following tables show the comparison
Between the annual records at the end of years 2004 and 2006 done with the AASB and IFRS
(Taylor, Tower and Neilson, 2010).

THE IMPLICATION OF INTERNATIONAL ACCOUNTING IN AUSTRALIA AFTER IFRS PERIOD
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Description The amount of a million dollars
Depreciated/amortized amount 1231.21
Amount of revenue and materials 1253.68
Benefits of employees 449.85
Cost of borrowing 138.28
Profit and loss expenses -226.6
Available assets 2334.76
Disposable assets 24981.70
Solid assets -31405.90
Total AASB 36561.32
Equity amount as per 31st December
Description Amount of a million dollars
Depreciated/amortized amount 1231.21
Amount of revenue and materials 1253.68
Benefits of employees 449.85
Cost of borrowing 138.28
Profit and loss expenses -226.6
Available assets 2334.76