Australian Companies are required to adopt International Accounting Standards by 1st January 2005. What are the reasons for this move and what problems does it cause for financial reporting by these companies?
the below recommendations:
First, IAS should consider the distinctive features on Australian market especially where the market economy is evolving. So that Australian companies can easily adopt IAS.
Second, IAS should allow alternative treatment in special case. For example, IAS should provide for another measurement basis, such as historical cost, when fair value is unable to be determined reliably.
Third, based on the current presentation of IAS, I suggest that IASB expand explanatory notes, implementation guidance and background information of each standard It will reduce the difficulties faced by standard setters and Australian companies while adopting IAS.
Fourth, I recommend that IASB publish IAS training materials to facilitate the education of the accounting profession and to improve their understanding and implementation of the standards.