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Australian Accounting Standards Powerpoint

The document discusses the history and current state of Australian accounting standards. It notes that Australian standards originally developed separately but have increasingly converged with International Financial Reporting Standards (IFRS) over time. Currently, Australian standards are largely aligned with IFRS for public companies, though some differences remain for small businesses and non-profits. There is an expectation that Australian standards will continue moving towards full IFRS adoption in the future.

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Chris Diaz
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221 views

Australian Accounting Standards Powerpoint

The document discusses the history and current state of Australian accounting standards. It notes that Australian standards originally developed separately but have increasingly converged with International Financial Reporting Standards (IFRS) over time. Currently, Australian standards are largely aligned with IFRS for public companies, though some differences remain for small businesses and non-profits. There is an expectation that Australian standards will continue moving towards full IFRS adoption in the future.

Uploaded by

Chris Diaz
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Australian Accounting

Standards
By: Christopher Diaz
History of Australian Accounting Standards

● In 1966 Accounting Standards Board and PSASB working under AARF

● 1984 Establishment of the ASRB under the Council for Companies and Securities

● Companies Act of 1981

● ASRB renamed itself and In 1991 their standards applied to all Corporation Laws

● Merge of the PSASB and the Australian Accounting Standards Board in 2000

● The formation of the Financial Reporting Council in 2001

● In 2005 the Financial Reporting Council and AASB decided to formally adopt many of IFRS

Standards
Current Australian Accounting Standards

● Current Pronouncements in Australian GAAP


○ Financial Instruments
○ Group Accounts
○ Income Taxes
○ Insurance Contracts
○ Leases and Other small topics
● Current Pronouncements in Australian GAAP non for profit sector
○ Leases
○ Revenue
○ Service Concession Arrangements
○ Other Small Topics
Scope of Australian GAAP

● Issue Transparent Standards for both for Profit and non-profit Entities

● Make Financial Statements easy to interpret world wide

● More implementation of IFRS

● Ensure Companies and Organizations comply with Accounting Standards

● Change of Australian GAAP with IFRS


Comparison of Australian GAAP and IFRS

Australian GAAP IFRS

● All For-Profit Entities ● All For-Profit Entities

● Tier 1 Reporting ● Tier 1 Reporting

○ Tier 2 Reporting Disclosures ● Financial Statements

● Financial Statements ● Permitted use of only FIFO

● Permitted use of only FIFO ● Income Statement Accounting Policy

● Income Statement Accounting Policy


Comparison of Australian GAAP and US GAAP

Australian GAAP US GAAP

● Financial Statements ● Financial Statements

● FiFO Inventory Method ● FIFO Inventory Method

● Asset and Liability Measurements ● Asset and Liability Measurements

● Depreciation Model ● Depreciation Model

● End Goal For Stakeholders ● End Goal For Stakeholders


Expectation of IFRS in Australia

● SMEs sector not required to use IFRS

● Non-profit entities not all using IFRS

● Reduced disclosure for SMEs

● Has fully adopted in for profit entities

● 2015 IFRS review from Stakeholders

● AASB is considering Full Adoption in the Future


Conclusion

● Main Goal of IFRS and Australian GAAP

● Australia’s move to IFRS

● U.S GAAP and Australian GAAP

● SMEs and non-profit Entities

● The Future of Accounting Standards in Australia


References

Chapple, S. (2018). “IFRS adoption in Australia: A Strong Structuration Perspective.” Accounting


History, vol. 23(3), pgs 265–295.

Xiaojiao (Jo) Wang. (2019). Compliance over time by Australian firms with IFRS disclosure
requirements. Australian Accounting Review, 29(4), 679-691.

Lin, S., Riccardi, W. N., Wang, C., Hopkins, P. E., & Kabureck, G. (2019). Relative effects of IFRS
adoption and IFRS convergence on financial statement comparability. Contemporary Accounting
Research, 36(2), 588-628.

El-Gazzar, S., & Finn, P. M. (2017). Restatements and accounting quality: a comparison between IFRS
and US-GAAP. Journal of Financial Reporting and Accounting, 15(1), 39-58.

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