Adoption of Ifrs in Australia - Essay - 1932 Words

International Financial Reporting Standards (IFRS) are an international set of accounting standards. Early in the 21st century, the Australian Accounting Standards board, with guidance from the Financial Reporting Council (FRC), decided to implement IFRS’s throughout Australia. This decision was made so that Australia could participate and contribute to the development of a distinct set of accounting standards that could be used all around the world. This report will explore the process of setting standards in Australia, the effects it can have on interest groups, and the way in which the introduction of IFRS would change the way Australian accountants report their financial position. The setting of accounting standards is a political†¦show more content†¦This includes public sector entities, certain non-listed companies such as large companies, as well as not-for-profit organisations such as charities. There are minor differences between the IFRS and A-IFRS, for example, differences in wording to accommodate the Australian legislative environment, as well as additional disclosures, and additional requirements for not-for-profit entities. (Deloitte, 2005, A-IFRS vs. IFRS). Process of Setting Standards I believe that the process of setting standards, both in Australia, and on an international level, is a political process. It involves politics to a great extent in a number of ways. For example, politics are involved during the standard setting process, as the groups involved are all government groups which are statutory bodies under various acts, this is politics. The affects that the standards have on stakeholders in Australian companies as well as the economy as a whole, is also linked to politics. The FRC advises the Australian government on the process in which accounting standards are set, as well as advising the direction in which the AASB will head. The AASB is responsible for standard setting in Australia. Although the FRC can provide the AASB with strategic directions, it does not have the power to directly force the AASB to create or amend a specific standard. The FRC is also responsible for appointing the members of the AASB,Show MoreRelatedAccurate Accounting Measurement: Fair Value Measurement Essay1315 Words   |  6 Pagesparticipants at the measurement date†. This is sometimes referred to as an â€Å"exit price†.(AASB13) IFRS 13 IFRS 13, Fair Value Measurement, was adopted by the International Accounting Standard Board on May 12, 2011. IFRS 13 provides guidance for how to perform fair value measurement under IFRS and takes effect on January 1, 2013(IFRS 13). It does not provide guidance as to when fair value should be used(IFRS 13). The guidance is similar to the US GAAP guidance. 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