The quality and comparability of Australian financial reporting has improved in the decade since local adoption of international reporting standards (IFRS), according to a research paper from the Financial Reporting Council (FRC) and Australian Accounting Standards Board (AASB).
The report indicates that local accounting under IFRS has had a positive impact on the Australian economy, been well received by investors and analysts of publicly-listed Australian companies, and has improved the comparability of Australian entities’ financial reporting against global peers.
Lee White, chief executive of the Chartered Accountants Australia and New Zealand (CA ANZ) and Helen Brand OBE, chief executive of the Association of Chartered Certified Accountants (ACCA) have both welcomed the findings of this report, praising Australian accountants for their effective implementation of complex international standards to the benefit of local companies, investors and the economy.
“This study clearly shows the importance of effective accounting practice to the Australian economy. Subscribing to IFRS enables us to leverage the global market, particularly as accounting is a truly global profession. Accountants share their skills across many different locations and economies."
Mr White continues: "Australia as a capital importer, and IFRS enables the rest of the world to have confidence in what our financial reports are showing."
Helen Brand OBE, chief executive of ACCA, said: “As a global body, ACCA supports the international adoption of a consistent financial reporting framework. Australia was at the forefront of global accounting standards when it adopted IFRS a decade ago, and it is great to see that this has had a tangible positive impact on the local economy, and the value of Australian companies and their financial reports on a global scale."
“Consistent, ethical accounting is crucial to every country’s companies and markets, and together with CA ANZ, we are proud to train accountants who understand the complexities of IFRS and are able to apply these in the local market.”
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