Holmes Institute HI6025: IFRS Adoption in Australia and Ireland

This report critically examines the adoption of International Financial Reporting Standards (IFRS) in Australia and Ireland. It highlights the successful implementation of IFRS in both countries, while also comparing the differences in their approaches. Australia's adoption, commencing in 2005, involved a review by AASB to assess its relevance. The report notes the benefits of IFRS, such as transferable skills and knowledge. The Republic of Ireland, allowing optional IFRS application, presents a contrast to Australia's higher voluntary usage. The report references the importance of culture in IFRS adoption. The analysis covers the transitional issues, challenges, and benefits associated with IFRS adoption, providing a comprehensive overview of the subject.

Running Head: ACCOUNTING THEORY & CONTEMPORARY ISSUES
ACCOUNTING THEORY & CONTEMPORARY ISSUES
Name of the Student
Name of the University
Author Note

1ACCOUNTING THEORY & CONTEMPORARY ISSUES
Table of Contents
Similarities and Differences in IFRS adoption faced by Australia and Ireland.........................2
Reference....................................................................................................................................3

2ACCOUNTING THEORY & CONTEMPORARY ISSUES
Similarities and Differences in IFRS adoption faced by Australia and Ireland
The IFRS standards adoption in Australia was since January 1, 2005. AASB in 2015
has commenced review of the standards adoption of IFRS for hearing experiences and view
of the stakeholders of Australia, with the objective of assessment of ongoing IFRS standards
relevance of the IFRS standards to the profit and non-profit reporting entities of Australia. It
has been found that transition process of IFRS has been reasonably smooth for most of the
sectors. Moreover, key benefit of its adoption across all the sectors has enabled the preparers
and users for moving between countries and sectors with the transferrable skills and
knowledge (Ifrs.org. 2020).
The similarities between IFRS adoption in Australia and Ireland is that both of the
country has adopted it successfully. Republic of Ireland has used options under regulation of
IAS for permitting optional IFRS standards application as adopted by EU for all the
companies whose securities does not trade in the regulated market, other than the entities not
trading for the gain. The financial statement intends to give true and view in the Ireland and
UK and are subject to both standards of financial reporting of applicable framework of
financial reporting and company’s requirement of accounting in respected jurisdiction. In EU,
standards issued by the IASB should go through the due process of the endorsement before it
become law in EU. However, the differences of adoption between two countries is that
Australia had quite higher voluntary IFRS usage, whereas IFRS adoption is very low in
Ireland. Therefore, it can be said that culture plays important role in adoption of IFRS
(Cascino and Gassen 2015).

3ACCOUNTING THEORY & CONTEMPORARY ISSUES
Reference
Cascino, S. and Gassen, J., 2015. What drives the comparability effect of mandatory IFRS
adoption?. Review of Accounting Studies, 20(1), pp.242-282.
Ifrs.org. 2020. IFRS . [online] Available at:
https://www.ifrs.org/news-and-events/2017/04/ten-years-on-australia-sees-benefits-of-ifrs-
adoption/ [Accessed 24 Jan. 2020].