Question

Short Answer Question 1 - Regulatory Framework From January 2005, Australia has adopted the accounting standards...

Short Answer Question 1 - Regulatory Framework

From January 2005, Australia has adopted the accounting standards issued by the International Accounting Standard Board (IASB). One of the key supporters of this adoption is the Australian Securities Exchange (ASX).

Required:

Why do think that the ASX was keen for Australian companies to adopt the international accounting standards? Provide two justifications to support your answer.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

By adopting the accounting standards issued by the International Accounting Standard Board, the below are the justification in support of adotping the same for Australian companies:

1) It would bring in transparency in reporting of financial statements and comparability of finanical statements which would lead investors and other users of financial statements to make more informed decision.

2) It would also reduced any information gap and strengthen the reporting requirements so that the people who have been entrusted with the money are held accountable to the providers of capital.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Choose the correct answer from the options The underlying theme of the conceptual framework is (E1-PC1)...
Choose the correct answer from the options The underlying theme of the conceptual framework is (E1-PC1) decision usefulness. understandability. faithful representation. comparability. The objective of financial reporting in the International Accounting Standards Board’s (IASB’s) Conceptual Framework (E1-PC1) Is the foundation for the Framework. Includes the qualitative characteristics that make accounting information useful. Is found on the third level of the Framework. All of the choices are correct regarding the objective of financial reporting. The second level in the International Accounting...
Prior to Australia’s adoption of International Financial Reporting Standards in 2005, Australian accounting standards permitted the...
Prior to Australia’s adoption of International Financial Reporting Standards in 2005, Australian accounting standards permitted the revaluation of internally generated intangible assets. Required: Using the AREA framework, comment on the following statement: There is an inconsistency in financial reporting standards, when Property, Plant & Equipment can be revalued under AASB 116, but according to AASB 138, certain intangible assets cannot be. 1: ANALYSE (30 – 50 words) Identify the issue and why it matters. Determine what you need to find...
The International Accounting Standards Board (IASB) issued a revised Conceptual Framework (CF) for financial reporting which...
The International Accounting Standards Board (IASB) issued a revised Conceptual Framework (CF) for financial reporting which will become effective for preparers who develop accounting policies based on the CF on or after 1 January 2020. Noticeably, the new CF has updated the definitions of assets and liabilities as well as the corresponding recognition criteria. a) In the new CF (the 2020 CF), recognition is appropriate if it results in both relevant and faithfully represented information about assets, liabilities, equity, income...
Objective: The objective of this report is to analyse the Australian Conceptual Framework in accounting standard...
Objective: The objective of this report is to analyse the Australian Conceptual Framework in accounting standard setting and apply the related key concepts to contemporary business practices. Your discussion should be aligned with the Conceptual Framework for Financial Reporting and relevant AASBs to support your analysis. Part A Samsung Ltd. signed a 5-year contract to supply its electronic products to Harvey Norman Ltd. for $300 million. The contract was completed and signed by both companies on the last day of...
Accounting Headline 7.11 An example of the effect of new accounting standards on existing debt covenants...
Accounting Headline 7.11 An example of the effect of new accounting standards on existing debt covenants New accounting standards could trigger debt covenants ALEXANDRA CAIN Companies with large fleets need to look at the real impact on their business, writes Alexandra Cain. A decade after the idea was proposed, it’s likely a new accounting standard will require businesses to recognise operating leases on balance sheets. Under existing accounting standards, operating leases are not recorded on balance sheets. Bringing these leases...
You are the external auditor of Vila Tours Ltd, a company which promotes Vanuatu tours to...
You are the external auditor of Vila Tours Ltd, a company which promotes Vanuatu tours to Australia and New Zealand and owns a chain of duty-free shops. You have been auditing the company since it was listed on the Australian Securities Exchange 15 years ago. Although the accounts have never been qualified, you are aware that the company has been making losses for the past 4 years as a result of short-term cash flow difficulties. The company has no long-term...
During the trial, lawyers for the accused said that the men believed that the accounting decisions...
During the trial, lawyers for the accused said that the men believed that the accounting decisions they made were appropriate at the time, and that the accounting treatment was approved by Nortel’s auditors from Deloitte & Touche. Judge Marrocco accepted these arguments. Marrocco added he was “not satisfied beyond a reasonable doubt” that the trio (i.e., Dunn, Beatty, and Gollogly) had “deliberately misrepresented” financial results. Given the facts of the case, do you believe Judge Marrocco’s decision was justified? Explain....
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT