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Australian accounting standards
Finance & Accounting
Pages 10 (2510 words)
Australian Accounting Standards Table of Contents Table of Contents 2 Answer to Question No 1 a 3 Answer to Question No 1 b 4 Answer to Question No 1 c 5 Answer to Question No 1 d 6 Answer to Question No 1 e 7 Answer to Question No 2 9 References 12 Answer to Question No 1 a The Financial Reporting Council (FRC) had decided to support the fact that Australian Accounting Standards would be consistent with the International Accounting Standards from the adoption onwards due to certain specific reasons…
FRC was in support to the system because principle-based rules are the regulator within the capital markets. Moreover, this system is broader than the rule-based system and need interpretation. Also several international legal systems are based on approaches derived from principles. Practically, the FRC supported the adoption process because of the indication towards lessening of information costs. Following the accounting processes under International Accounting Standards is accompanied by the cost reduction. Adoption of the international standards would also enhance efficiency within the Australian capital market through capital flow into the market. Enhancement of market efficiency would be possible because through the adoption, the nations would be able to set internationally accepted, competent quality, equivalent and apparent standards of accounting (Abeysekera, 2005). Although there are considerable benefits associated with the adoption of international standards of accounting, there are also various potential barriers that hinder proper implementation of the International Accounting Standards all around the world. ...
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