INTERNATIONAL ACCOUNTING - Group Project - Essay Example

Australia is an independent nation within the Commonwealth, and the powers of the Commonwealth are clearly stated in the constitution. At the same time, residual powers rest with the state. (Background Note: Australia, Nov 24, 2010). It is interesting to note that the literacy rate of Australia is over 99%, and this higher rate is achieved by the effectiveness of Australian education system. The Australian population was 22.3 million in 2010 and surveys indicate that the country maintains a population growth rate of 2.1% (ibid). Although the major part of Australian culture is derived from European roots, the country possesses its own cultural features also.

In addition, as reported in Australian Immigration News (n.d.), immigration has played a crucial role in the development of Australian culture. The Australian political spectrum is dominated by three political parties, among which the Liberal Party (LP) and the National are more conservative (Shipping Australia). While the former represents urban business interests, the latter mainly deals with rural interests. Australian accounting system Australian Accounting Standards Board (AASB) is responsible for developing and maintaining financial accounting standards in Australia.

In Australia, traditional manual accounting system is largely replaced by accounting software or Accounting Information System (AIS). AASB timely makes amendments to the existing acts and rules so and forces certain industries to compulsorily comply with these proposed accounting standards. “The AASB’s policies and processes support the implementation of the AASB’s strategies relating to its international role and domestic topics and priorities” (AASB). Since the AASB has formulated separate accounting standards for, non-profit organizations and public and private sector organization, it assists the firms to prepare final financial statements effectively.

It also gives considerable significance to domestic requirements also and thereby contributes to the overall development of the country. Business environment Australia features a work force of 10.8 million, out of which manufacturing industry represents 9.1% and retail trade indicates 10.7% (Background Note: Australia, Nov 24, 2010). This data indicates that Australia could successfully distribute its workforce among manufacturing as well as retail sectors. As per the World Factbook statistics, the Inflation rate of Australia in March 2010 was 2.

9% per year and this low inflationary level indicates that the nation could employ its different monetary tools successfully. In 2010, Australia earned $210.7 billion from trade exports, and the main export items include coal, iron ore, wool, alumina, meat, and wheat. At the same time, the country spent $200.4 billion on imports in 2007, and machineries, transport equipments, crude oil, and other petroleum products are the main elements of import trade (CIA, World Factbook). Dimensions The AASB takes all efforts to merge Australian accounting practices with global financial reporting standards.

Many business entities are forced to follow Australian Accounting Standards while preparing their books of accounts. This provision is mandated by Australian Corporations Act 2001. Factors