Question

1. Choose a country that has adopted IFRSs (i.e. global accounting standards) for at least 3 or more years, as revealed in the accounting literature, and discuss the following:

I. In what year did the country adopt IFRSs?

II. Were the IFRSs introduced all together (at once), or gradually into the local accounting standards of your chosen country? Explain the possible reason.

III. Discuss the benefits and challenges reported in the literature about the adoption of IFRSs in your chosen country.

Answer 1

1)

Australia has adopted IFRS Standards since 1 January 2005. When Australia initially adopted IFRS Standards they made number of changes to IFRS Standards, including

2)  When australia intoduced IFRS standards, AASB made number of changes including Elimination of accounting policy options and addition of disclosures.

In 2007, the AASB approved an 'Amending Standard' that rescinded the changes made to IFRS when it initially adopted them. Those amendments were effective 1 July 2007. Australia has 2 tier if reporting requirenemts for preparing financial statements i.e Australian accounting standards and australian accounting standards - reduced diclosure requirements.

Report on evaluation of IFRS Standards in Australia

= One of the key benefits of adoption is, it has enabled users and preparers to trade between sectors, and between countries effectively and efficiently.

= Some entities, who operates in other countries use IFRS Standards, have experienced cost savings in preparing financial reports.

= the transition process has been smooth for most sectors.