Lecture 1
The Australian External
Reporting Environment
Introduction
Assessments
In-class quiz (20%) due week 5. Closed book
test covering topics from week 1-4 (1 hour)
Group Presentation (20%) held week 9-11. A
marking Rubric will be provided to students.
Final exam (60%). Closed book exam (3 hour
plus 10 minutes reading time)
Process:
1. IASB may establish an Advisory Committee
2. IASB may develop and publish Discussion Documents for
public comment
3. After considering comments received, an Exposure Draft is
developed and published for public comment
4. After considering the comments, IASB would issue an
International Financial Reporting Standards (IFRS).
Benefits of harmonisation:
Allow investors in international capital market to make
more reliable comparisons
Barriers to international capital flows would be
reduced.
Reduction in financial reporting costs for multinational
companies
Global harmonisation:
Adoption of a single set of accounting standards throughout the
world.
Internationalisation
Australia developing local accounting standards based on an
examination of accounting standards and practices adopted
outside Australia.
Pro-regulation perspective
Arguments in favour of a free market where users are
expected to pay for information break down when we
consider consumption of free or public goods