Description
In recent years, there have been calls for the Australian Accounting Standards Board (AASB) to eliminate the differences between Australian standards "international" Accounting Standards.
The AASB is conscious of the need to encourage the flow of international investment funds and the need to minimise the costs of those businesses obligated to meet the reporting requirements of more than one country. Thus the AASB is Accounting Standards throughout the World. The AASB is also conscious of its commitment to the development of a framework for high quality Australia. It is in reconciling these commitments that the AASB difficulties. is faced with
An important issue to consider is, what constitutes "international" Accounting Standards? There are no universally accepted "international" Accounting Standards. The Accounting Standards of all major jurisdictions differ and Australia is no more "out of step with the rest of the world" than any other major jurisdiction. Adoption of the United States (of America) or International Accounting Standards Committee (IASC) Standards would satisfy some members of the financial community but would not meet the demands of all its members.
This paper has been written to enable the AASB to explain to its constituents its views on the subject of international comparability. It asks why the differences in Accounting Standards throughout the World exist, examines the arguments for and against comparability, questions how to best achieve improved comparability without sacrificing the quality of financial reporting in Australia, and then identifies how internationally comparable existing AASB Accounting Standards are when compared with those of the major standard-setting jurisdictions. ISBN:0909744637
