StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

Introduction of international financial reporting standards(IFRS) in Australia - Essay Example

Cite this document
Summary
Abstract: In today's fast-paced modern world, establishment of relations between countries has become inevitable, due to widespread Globalisation. There has been a steady increase in the number of financial transactions that take place amidst countries on the international front, in the form on direct foreign investment, multinational corporations, etc…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER92.2% of users find it useful
Introduction of international financial reporting standards(IFRS) in Australia
Read Text Preview

Extract of sample "Introduction of international financial reporting standards(IFRS) in Australia"

Download file to see previous pages

The IASC was established in the year 1973, at London, as an independent private-sector body. It sought to lay down comparable and harmonising standards for accounting, in the context of International Financial Transactions. These set standards were commonly termed under International Accounting Standards (IAS). The membership of the IASC involves about one hundred and forty three organisation in one hundred and four member countries.

The main body that undertakes the formulation of a set standard for financial accounting, amongst the member nations, is the IASC Board, comprising sixteen member countries. In the year 2000, on May 20th, the member countries felt the need to renew the IASC structure and unanimously voted in support of the same. This new structure came into force on April 1st, 2001 and was termed the International Accounting Standards Board (IASB).

The new structure comprises two distinct bodies within the IASB, namely, the Trustees and the Board. The trustees perform advisory functions and also raise funds. The Board on the other hand, performs the sole function of setting accounting standards. On the lines of the IAS as enforced by the IASC, the IASB has come up with the International Financial Reporting Standards (IFRS), as the standards for accounting and financial reporting.

Thus, the IFRS is the new standard for accounting and financial reporting, being adopted by the members of the European Union (EU) and other countries like Australia, China, etc. Reasons for its adoption in AustraliaGlobal markets have become integrated and extremely inter-dependent due to the increase in multilateral business ventures and investments. Thus, acknowledged and approved standards of accounting facilitate easy trading and also increase the trust factors amidst countries.

Australia, too, is no exception to this growing globalisation and growth, since it cannot remain aloof from world activities. Therefore, it needs to adopt the same standards of accounting and financial reporting, as wet by major countries and international organisations. Here are some of the important reasons as to why Australia has adopted the International Financial Reporting Standards:Increased Transparency: IFRS facilitates increased transparency and clarity in global financial undertakings and accounting.

Investors can carry forward and implement their investment plans in Australia, without fear of any risks. This would increase Australia's revenue, while also strengthening its multilateral relations.Greater Comparability: Since the IFRS are the global standards set by IASB, there is bound to be greater comparability between the financial reports of Australia, with other

...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Introduction of international financial reporting standards(IFRS) in Essay”, n.d.)
Retrieved from https://studentshare.org/miscellaneous/1514680-introduction-of-international-financial-reporting-standardsifrs-in-australia
(Introduction of International Financial Reporting standards(IFRS) in Essay)
https://studentshare.org/miscellaneous/1514680-introduction-of-international-financial-reporting-standardsifrs-in-australia.
“Introduction of International Financial Reporting standards(IFRS) in Essay”, n.d. https://studentshare.org/miscellaneous/1514680-introduction-of-international-financial-reporting-standardsifrs-in-australia.
  • Cited: 0 times

CHECK THESE SAMPLES OF Introduction of international financial reporting standards(IFRS) in Australia

Australia and David Copperfield

About the same time-frame that the serial "David Copperfield" was written many young Englishmen had set out to australia to seek what future the continent would offer them.... Some of those young men set out for australia as convicts from overcrowded English prisons.... Initially, England looked to australia as a possible solution to its overcrowded prisons.... australia had been little explored by this time and was viewed as a viable option as a penal colony....
7 Pages (1750 words) Book Report/Review

Australian Literature

The novel “The Solid Mandala” is based on Arthur and Waldo Brown, who are fraternal twins, and are born in australia to parents who were transplanted from England.... https://studentshare.... cemcw.... om/document-host/update?... d=301751… Aboriginal philosophy is a main component of a life in the Australian environment to ensure the continuation of the survival conditions....
13 Pages (3250 words) Book Report/Review

Comparison in Cultures of Australia and Japan

This report "Comparison in Cultures of australia and Japan" presents Japan as a country with affluent history and culture.... All this is at poles with australia where an egalitarian society flourishes and history and traditions do not carry much significance.... This is reflected in its arts, media, and lifestyle....
5 Pages (1250 words) Report

The Rise of China is a Security Risk to Australia

This paper ''The Rise of China is a Security Risk to australia'' tells that The rise of China and its current developments in military capabilities is a widely discussed topic today.... With its emergence as a manufacturing giant and its unmeasured consumer market, countries across Eastern Asia, including australia, think China's economy is headed to be the world power.... The close bilateral relationship between China and australia poses both an opportunity and a challenge for australia....
5 Pages (1250 words) Report

International Maritime Law on Hot Pursuit

The Vulcan case resolution is dependent on the international law of UNCLOS, signed treaties, and national laws of australia.... Since the ratification of UNCLOS in 1982 and adoption of the australia's Ocean Policy in 1998, the management of its maritime zone has been based on constituent rules and regulations.... Internally, australia has the Fisheries Management Acts of 1991(FMA) that support maritime law enforcement in areas like hot pursuit (Navy, 2006)....
8 Pages (2000 words) Report

Australian Higher Education

This paper is going to look at the issues concerning the adults in the 21st century, higher and vocational education in australia.... Although today it is easy to obtain the software and hardware required in these institutions in australia because there are many vendors operating the same, financing the acquisition of these materials is a big problem (Australian Social Trends, 2008).... hallenges affecting adult, vocational and higher educationIn australia adult, vocational and higher education has been exposed to international and local problems....
11 Pages (2750 words) Report

English Teaching Methods in Australia and Saudi Arabia

This report "English Teaching Methods in australia and Saudi Arabia" discusses the English language as very important as a means of communication.... omparison and contrast between English teaching methods in australia and Saudi ArabiaApproaches Used in AustraliaCommunicative Language TeachingThere are two approaches to teaching English that I have met in australia, the first one is Communicative Language Teaching (CLT)....
11 Pages (2750 words) Report

Australian Curriculum and the 21st Century Learners

australia not only boasts of being a dynamically multi-cultured and having a vibrant economy but the nation also boasts of having an education system considered to be of the highest standard, enjoying international renown (Stephenson 1998).... australia not only boasts of being a dynamically multi-cultured and having a vibrant economy but the nation also boasts of having an education system considered to be of the highest standard, enjoying international renown (Stephenson 1998)....
10 Pages (2500 words) Report
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us