Australian accounting standards Essay example
Undergraduate
Essay
Finance & Accounting
Pages 10 (2510 words)
Download 0
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…

Introduction

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. ...
Download paper
Not exactly what you need?

Related papers

Accounting and Society(The Minerals Resource Rent Tax)
Australian government collects huge revenue from the taxes paid by the mining industries in the country. The various new features of MRRT have been included in this study. Moreover the potential impacts of the introduction of MRRT on the accounting policies followed by the mining companies have also been studied. Mineral Industry of Australia has been reviewed and its inherent potential and its…
Intermediate Financial Accounting
International Accounting Standard 38 mentions the utility and usage of intangibles in the financial aspect of companies. The intangible assets are the intellectual property rights, goodwill and the expenditures of the company on research and developments. They are also known as capital developments. In the second part of the report, the examples of two famous listed Australian companies have been…
Finance accounting
Lastly, the reserves of the company is estimated and their modes of utilization so that the write-down of the company can be avoided. Impact of Australian Accounting Standards When the net realizable value for all of the subsequent period. Due to a certain circumstances the inventories of the company needs to be written down below the cost that no longer exists or with the evidence related to the…
Accounting Basics
The buyer who is willing to buy the business will always see that what the value of the assets in the market is? The seller will also see that he is getting worth amount or not. The elements of cost which are included in the fair valuation of assets are its purchase price, any costs to be incurred for the movement or transportation and costs of dismantling and removing the asset from its original…
Brief report Government and not for Profit Accounting
Some governments set up independent bodies to formulate guidelines that are followed in the process of financial reporting. These bodies come up with rules and regulations that are followed by these entities. These independent bodies also determine which institutions are supposed to submit financial reports. This paper aims at illustrating a good understanding of the need for financial reporting…
Financial Reporting Question & Answers
It eliminates all the alternatives associated with financial reporting. There are various benefits of standardization: Standardization of accounting rules enable multinational firms in developed nations to create significant employment opportunities in the job market. Professionals in accounting and other fields find it easy to relocate to other countries as a result of globalization for there is…