Accounting Theory Report : The Chief Accountant Of The Australian Securities And Investment Commission

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ACC30001 Accounting Theory Report From: Osama Aldrewesh To: The Chief Accountant of the Australian Securities and Investment Commission (ASIC) Report handed to ASIC: 26th September 2014 Executive Summary This report has been compiled for the Chief Accountant of the Australian Securities and Investment Commission (ASIC). Its aim is to provide an analysis of how international financial reporting standards (IFRS) have improved reporting quality. This report found that there has been a recent move to using these standards as a blanket standard in most Western countries as the need for consistency in financial reporting is obvious in a more globalised world. This report, based on academic journals and textbooks as evidence, found…show more content…
The aim of this assessment is to prepare a report for the chief accountant of the Australian Securities and Investments Commission to provide research evidence about whether, and if so how, the adoption of International Financial Reporting Standards can improved financial reporting quality in Australia and other adopting countries. What are the International Financial Reporting Standards? The IFRS were introduced in 2001 when the International Accounting Standards Board (IASB) took over from the old International Accounting Standards Committee (IASC). The move to these standards have been part of a movement for accounting which has seen a lot of countries change the way they go about their domestic accounting and instead use the international standards for more consistency across the globe (Brochet, Jagolinzer & Riedl, 2013). The IFRS are made to be a common global language used for accounting and business in order for an organisations monetary situation is easily understood and interpretable between different countries (Eng, Sun & Vichitsarawong, 2014). For example, financial reporting in Saudi Arabia of an organisation may look more favourable than an Australian company, because of the different measures used by

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