HI6025 - Impacts of IFRS Adoption on the Australian Financial Reports

This report analyzes the impacts of IFRS adoption on financial reporting in Australia, focusing on its effects on conservatism, financial report quality, and earning management. It examines how IFRS implementation has influenced accounting practices, including deferred tax disclosures, financial readability, and the role of audit committees. The research highlights improvements in accounting standards, increased investor confidence, and a stronger relationship between goodwill impairment and investment opportunities. Ultimately, the report concludes that IFRS adoption has positively impacted the Australian economy by enhancing accounting quality, improving the credibility of firms, and increasing the value relevance of financial reports. Desklib provides access to this and other solved assignments for students.

Impacts of IFRS adoption in Australia
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Introduction
• The report was published at AASB research center in October, 2016.
• Research paper on international accounting.
• The various effects of IRFS adoption of international reports in Australia.
• The article of this paper can be retrieved from the link which follows.
Http://www.aasb.gov.au/admin/file/content102/c3/AASB_RR-12_10_16_IFRS_Lit_Review.pdf
• The group presentations emphases on various implications of the IRFS implementation in financial reports
• The group presentations are based on the key findings computed from the research.
• The analysis points out on the evidence of IRFS implementation in the current Australia.

Implication of IRFS on Conservatism
• Recognition of losses before the appreciation of the real profits
• attainment of conservatism depends on the calculation of both under and over measured underlying book value of both the assets and
liabilities in all organizations.
• Financial reporting in Australia over the times before the enactment of the standard board of IRFS has become conservative.
• financial statements users such as the managers and all investors are required to enhance changes in the conservatism ideal.

Implications of IFRS on the financial report.
• IFRS has imposed effects in financial report is evident in three economic aspects
• These aspects are the quality of the financial statements
• Effect in the comparability of the statements of finance in the international cross-cultural market
• The Assembly of both financial analysts and stakeholders.

Implication of IFRS on the quality of accounting
• Accounting quality of the financial report majors on the earnings, conservatism, report reliability, evaluation of
the revenues and expenses, accrual reliability as well as assets impairments recognition.
• Accounting of numbers is directly affected by the type of the empirical method used .
• value of relevance has also improved in accounting information
• Accrual reliability reduction.
• establishment of earning management.
• Accounting of numbers
• relevance of accounting information
• relative voluntary adoption

Implication on earning management
• Disclosure of deferred taxes
• The IFRS enables a firm to conduct a deferred tax assessment on values of a balance sheet
• Financial readability
• Incidences of small loses has turned out to be low
• The substantial balances are the deferred taxes that has more than one component
• The value relevance of the shareholders’ equity remains still throughout the evolution period.

Accounting value and audit committee
• Certify accrual standards and better the earning management
• Audit committee should have more associates and more accounting expertise
• Reports are legible by accumulating three accounting policies.
• Intangible assets.
• Financial gadgets.
• A summary of accounting procedure.

Impact of IFRS on Australia economy.
• IRFS has greatly improved the standards of accounting in Australia
• AASB deferred tax worthiness
• Corporates consequently fail to recognize the approved rules
• financial statement in Australia is boosted attracting more investors.
• A strong relationship between the goodwill impairment and the investment opportunity.
• Australian build trust of accountancy.
• The decline of accrual reliability

Summary and practical contribution of the impacts of IFRS
adoption in Australia
• Reports has shown positive outcomes on implementation of IFRS on accounting.
• The Australia Corporates adopted IFRS to measure the readability of financial statement
• Attaining consistent information on the intangible and tangible assets.
• Identifying the potential resource defining the assets value and significance.
• Measure the readability of financial statement.
• Assessing the length of financial report
• Gunning Fox Index

Conclusion.
• The Australian economy has advanced from the IFRS implementation
• Improve the accounting quality enhancing credibility of firms.
• An improvement of value relevance financial reports.
• benefits of the adoption of IFRS in all companies
• voluntary adoption of the IFRS