HI6025 Accounting: Analyzing IFRS Impact in Australia Post-2005

This report examines the implications of International Financial Reporting Standards (IFRS) adoption in Australia, focusing on its impact on earning management, conservatism, financial reporting quality, and overall accounting practices. Based on a review of academic articles, including "The effect of IFRS adoption on the financial reports of local government entities," the report discusses how IFRS implementation has affected income stability, the recognition of losses versus profits, and the consistency of financial reports. It also explores the influence of IFRS on various aspects of financial reporting, such as revenue assessment, cost evaluation, and asset recognition, highlighting both the benefits and challenges associated with the adoption of international accounting standards in the Australian context. Desklib provides access to this assignment and many other study resources.

Name
Tutor
Course
Date
IMPLICATION OF IFRS ADOPTION IN AUSTRALIA
ACCOUNTING

Executive Summary
• International Financial Reporting Standards (IFRS) are
universal accounting rules and merits for the revealing of
event in Financial Statement (FS) which were provided by
IFRS Foundation and International Accounting Standards
Board (IASB).
• They were established because of endeavoring to
coordinate the accounting norms in EU.

Introduction
• This paper is based on the article, "The effect of IFRS
adoption on the financial reports of local government
entities" published by Ahmed and Manzurul in 2012.
• This standard has been implemented in various nations
particularly the European Union’s members aside from
the USA that employs US GAAP. However, the US has
recognized critical areas in this standard and fused them
in their models.

Implication: 1. Earning management
• Concerning this paper, firms need to actualize the
utilization of IRFS as of extraordinary impact.
• Prevalence of little loses have ended up being low because
of the usage of the standards.
• Subsequently, the income for various companies has
significantly enhanced and turned out to be steady.

2. The implication of IRFS on Conservatism
• Conservatism can be understood as the slant of
associations to distinguish terrible news in the income in
the opportune manner than the profits appreciation.
• Thus, it implies that the organizations tend to perceive
losses before real profits appreciation.
• In accounting, conservatism is understood as oversight of
auspicious losses from the FS at the right time.

• Implications of IFRS on the financial report
• IFRS has forced impacts in money related report is
apparent in three financial viewpoints.

The implication of IFRS on the quality of accounting
• The impact on the financial reporting of the economic
consequences on the income, conservatism, report
consistent quality, assessment of the revenues and costs,
accumulation dependability and also resources hindrances
acknowledgment (Morris 156).

Conclusion
• This report presents discoveries from different
dependable and exact sources, for example, the article
“The Effect of IFRS Adoption on the Financial Reports of
Local Government Entities and Australian Society of
Certified Practicing Accountants and other peer-reviewed
sources on this matter.

Works Cited
• Bradbury, Michael E., and Kim M. Mear. "Interpreting the Impact of IFRS
Adoption." Australian Accounting Review 27.2 (2017): 214-219.
• Bryce, Mitchell, Muhammad Jahangir Ali, and Paul R. Mather. "Accounting quality in the
pre-/post-IFRS adoption periods and the impact on audit committee effectiveness—Evidence
from Australia." Pacific-Basin Finance Journal 35 (2015): 163-181.
• Edeigba, Jude, and Felix Amenkhienan. "The Influence of IFRS Adoption on Corporate
Transparency and Accountability: Evidence from New Zealand." Australasian Accounting,
Business and Finance Journal 11.3 (2017): 3-19.
• Firth, Michael, and Dimitrios Gounopoulos. "IFRS adoption and management earnings
forecasts of Australian IPOs." (2017).
• Hong, Hyun A., Mingyi Hung, and Gerald J. Lobo. "The impact of mandatory IFRS adoption
on IPOs in global capital markets." The Accounting Review 89.4 (2014): 1365-1397.