This report provides a comparative analysis of the financial reporting regulatory frameworks in Australia and the United Kingdom. It examines the perceived problems within each system, the roles of key decision-makers and relevant legislation, and the progress made towards the adoption of International Financial Reporting Standards (IFRS). In Australia, the Australian Accounting Standards Board (AASB) is responsible for setting financial reporting standards, facing challenges related to the reliability and relevance of financial information and the costs associated with adopting AASB and IFRS. The Australian Securities and Investments Commission (ASIC) and the Australian Prudential Regulation Authority (APRA) also play significant roles in maintaining market integrity and regulating deposit-taking institutions, respectively. The UK financial regulatory environment involves both IFRS and UK and Ireland GAAP, with companies having the option to choose between them. The report also uses Regulatory Capture Theory to critique each environment, assessing the extent to which these environments might be captured and whether such capture is beneficial or detrimental, supporting the arguments with observations from the analysis. Both countries have made significant progress in adopting IFRS, aiming for a common financial reporting framework based on IFRS standards and principles.
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