Australian Accounting Setting Board Analysis

Despite those enormous advantages, it has been argued that IFRSS adoption lead to significant costs. The main argument is that IFRSs do not consider local needs and priorities as every country has their own ‘business environment, legal systems, cultures, language and political environment’ (Henderson and Peirson, 2000 cited from Malthus, S., 2004). However, to overcome this problem, IASB can accommodate flexible reporting standards that enable companies to choose alternatives that are more suitable for their external condition. It is opinion of some opponents of IFRS adoption that IAS is ‘insufficiently detailed’ (Uddin,M.S., 2005, p.4) that require accountants’ and auditor’ professional judgment. However, overly detail might be contra productive and not flexible in anticipating every changes and differences.

UK’s IFRSs are designed to make it easier to compare the performance of organizations in different countries, rather than each country maintaining its own GAAP, which makes such comparisons difficult. All listed EU companies have been required to use IFRSs since 2005. The adoption of IFRSs by the private sector is expected to have various benefits for both companies and investors; including (1) UK’s IFRSs will remove the need for companies with foreign subsidiaries to translate the accounts for consolidation with the parent company accounts. Also (2) it will be easier for investors to make informed decisions about the performance of companies in different countries because of the increased transparency and a better understanding of financial statements.

The IFRS is basically a set of accounting rules which are issued by the IASB based in London, UK. These accounting standards have originated from its predecessor IASC defining the term IAS, which occurred in the 70’s. it was only after 2000’s that the IASB took a strong hold under the label IFRS claiming to be a lot more independent even though pertaining to its predecessor, efficiently staffed and better funded. Caffermen and zeff (2006) discuss about the gradual spread of accounting has made a considerable progress over time, and with the adoption of IFRS worldwide, accounting procedures could be smoothened.

States. Companies should report income, liability, equity, and assets. Many people (stockholders, investors, etc.) who have a stake in the company want to know this information before providing a service. In this paper, International Financial Reporting Standards (IFRS) and the Generally Accepted Accounting Principles (GAAP) will be compared for

IASB. 2010, "The Conceptual Framework for Financial Reporting" IFRS, pp. A21- A38, viewed 23 April 2014,

According to FASB, to achieve any improvement to the effectiveness will require a framework that supports consistent decision about disclosure requirement by the board. Also the reporting entities will be required to exercise discretion appropriately with the main objective of enhancing effectiveness. In pursuit of this objective FASB came up with a proposed disclosure framework project that comprises of the board decision process and the entity decision processes. The objective of FASB is to improve the

According to the research, Accounting standards exist to facilitate the preparation of high-quality and consistent general purpose financial statements to convey the useful information about the general financial condition and results related to reporting entities, such as companies, non-profit corporations and governments. And Australia adopted International Financial Reporting Standards (IFRS) in 2005, as directed by the Financial Reporting Council in its 2002 directive to the AASB. The Australian Accounting Standards Board has published AASB 15 Revenue from Contracts and Customers, the Australian equivalent of its international namesake, IFRS 15. And the purpose of the new Standards is to provide (except in relation to some specific exceptions, such as lease contracts and insurance contracts) a single source of accounting requirements for all contracts with customers, thereby replacing all current accounting pronouncements on revenue.

According to Deegan one of the reason of concern was leading substantial changes in numerous existing Australian standards and small changes in others reporting requirements due to adoption of IFRS. Ahmed and Alam revealed that from modifying report presentation formats to costs and benefits of profit seeking companies IFRS adaptation impacts significantly. They focused on the listed firms accounting policy after adoption of IFRS and found noticeable changes in results reconciliations prepared under AAS and IFRS. They also studies over decision making process of local government. For larger councils IFRS standards and argued for smaller councils as they though it would be a lot of changes for them to cope with. The authors did empirical study to examine the effect of adoption IFRS in local government entities. The results shows as a result of changing accounting policy from AASB to IFRS there are changes in equity and accounting surplus (loss). They used the annual reports of 117 Australian local government identified by adoption of IFRS the key components of stated in the reconciliation notes that impacts the variance between AASB and IFRS equity and surplus. Their Study also provided consistent result on the effect of adoption of IFRS by private sectors in Australia. Finally, this paper contributes significantly towards the study of IFRS adoption by local government and believes it is a positive move by Australian local government and for

TIER 1:- Tier 1 reporting requirements are applicable for the financial statements of following entities:-

In Australia the current reporting entity concept to abide by for reporting entities is the Corporations Act 2001. It and AASB101 determine who must compile financial reports (SAC 1), what financial statements companies must produce (AASB101.10), when (AASB101.36) & details of the company 's financial records (AASB101.112-124) are to be reported to its shareholders & customers. There is no one way to display this information, an entity can choose from up to 3 different costing methods, and 2 different analysis methods (AASB101.102). (ICAA Financial Reporting Handbook 2014)

Do the requirements of IFRS 8 Operating Segments enhance the quality of information available to financial statement users?

Reporting disclosure is one of the IFRS principles that state that each firm is required to present information for certain parties or the management. Only adequate and full disclosure of such information will give management the ability to make appropriate decisions. It is, therefore, advised that the accountants disclose too much information than too little. In perspective to the IAS, depending on the nature of the firms, the disclosure of this kind of information should be shown in the financial statements notes. Full disclosure is very important because an auditor uses the notes and other financial documents in doing an audit. In addition full disclosure is also one of the legal requirements.

With the globalization of international trades, it is necessary to design a common accounting language to compare the financial performance of companies from different countries. For this reason, International Accounting Standard Board (IASB) publish the International Financial Reporting Standards (IFRS) which are principle-based in order to improve the quality of financial reporting and to harmonize accounting standards in 2001.

A Report on the Significance of the IASB’s Conceptual Framework and the Exposure Draft ‘Conceptual Framework for Financial Reporting – The Reporting Entity’

A fundamental standard, the New Zealand International Financial Reporting Standard (NZIFRS) 10 - Consolidated Financial Statements, is used by a company for preparing and presenting consolidated financial statements. The core of the IFRS 10 is the principle of control provides the guidance and assessment process on the determination of control owned by the investors (ARSOY, 2016). According to New Zealand Accounting Standards Board (NZASB)’s IFRS 10 (2011), the control principle provides three essential elements (power, returns and the link between power and returns) to determine the level of control over the investee. Therefore, the investor should disclose the financial and non-financial information of the investee in the