AASB Standards and IFRS Compliance: Australian Accounting Practices

This report provides an overview of the Australian Accounting Standards Board (AASB) and its role in developing financial standards for public and private entities in Australia. It contrasts AASB's approach with that of the IASB, which primarily focuses on non-profit entities. The report also compares Australian standards with those of other countries, including the US (US GAAP), Canada (Accounting Standards Board), and the UK (FRS for UK GAAP), highlighting the adoption and compliance with IFRS in these regions. It references the impact of AASB 8 on analysts’ earnings forecasts and discusses the challenges and adaptations in different global contexts.

Running Head: AUSTRALIAN STANDARDS 1
AUSTRALIAN STANDARDS

AUSTRALIAN STANDARDS 2
According to (Miah, 2019), AASB commonly known as the Australian Accounting
Standards Board was formed in the year 1991, for the purpose of the development and
reporting of the financial standards. The standards were developed for both the public as well
as the private entities. IASB was formulated majorly to look after the non-profit entities
whereas the AASB adopted the procedure of setting standards to set for both the entities.
In the view of (He, Evans & He, 2016), Domestic companies use the US GAAP
permitted standards are followed by the company and more than 500 companies are
complying with the IFRS. The US is still not able to fully incorporate the standards as US is
highly prone to the litigious business environment and the city demands the higher standards
rather than merely GAAP that defines neutrality and faithful representation.
In case of Canada in the view of (Nobes & Zeff, 2016), the standards determined by
the Accounting standards Board is used by the companies of the Canada specially those
companies which are belonging to outside the public sector. The conceptual framework has
been enhanced by the use of the standards of the IFRS and the companies comply with IFRS
in Canada.
According to the perception of (Morris, 2017) the scenario in UK is such that, the
FRS for UK GAAP reports the new UK GAAP which is based on the IFRS for the small and
the medium enterprises. There are several standards such as EU adopted IFRS, IFRS
recognition and measurement.

AUSTRALIAN STANDARDS 3
References
He, L., Evans, E., & He, R. (2016). The impact of AASB 8 operating segments on analysts’
earnings forecasts: Australian evidence. Australian Accounting Review, 26(4), 330-340.
Miah, M. S. (2019). IFRS-Local GAAP Reconciliation Statements and Accounting
Information Quality. IFRS-Local GAAP Reconciliation Statements and Accounting
Information Quality (February 26, 2019).
Morris, R. D. (2017). Discussion of: The Phoenix Rises: The Australian Accounting
Standards Board and IFRS Adoption. Journal of International Accounting Research, 16(2),
155-157.
Nobes, C. W., & Zeff, S. A. (2016). Have Canada, Japan and Switzerland Adopted
IFRS?. Australian Accounting Review, 26(3), 284-290.