The topic of the paper is the “The development of the accounting standards of the Australian Accounting Standard Board after the end of the G4+1.”
I want to summarise the recent standardisation progress both international and in the view of Australia, and have a closer look on the Australian accounting environment. What was the G4+1, and why did it disband? What was the Australian reaction on the End of the G4+1. What will the future of international and Australian accounting look like?
I have chosen the topic because I am currently staying at the Australian Defence Force Academy and studying at the University of New South Wales. Australia has been one of the major standard setters in the world and has had a deal of influence on international accounting standards, although it is a relatively small economy in the world.
Hardly a day passes without problems of financial reporting appearing in the international press. Recent events like the scandals of Enron, Worldcom, and Xerox show the need for reasonable accounting. International accounting is an actual problem to be solved and a future chance for all kinds of businesses.
After the introduction I will first present the accounting environment of Australia and its institutions. Then I will discuss the development of international accounting and the G4+1 group and its dissolution. I will have a look on the “Harmonisation Project” and what happens in Australia after the end of the G4+1. At the end I will illustrate the relation between IAS and AAS, and give a conclusion.
For my work I used several recent books on Australian financial accounting that are used by institutions across Australia, various Journals on accounting, government reports, and especially Publications of the standard setting bodies.
Table of Contents
- Introduction
- Accounting in Australia
- Development of International Accounting
- The End of the G4+1
- The IASB
- Integration of Australia into international economy and accounting
- “Harmonisation Project”
- Australia – New Zealand Harmonisation
- International Harmonisation
- Contra Harmonisation
- Public Sector
- Conclusion
Objectives and Key Themes
This paper aims to summarize the recent progress in accounting standardization, both internationally and specifically within the Australian context. It examines the dissolution of the G4+1 group and its impact on Australia's accounting environment. The paper also explores the future direction of international and Australian accounting practices.
- Development of Australian Accounting Standards post-G4+1
- Impact of the G4+1 dissolution on Australia
- Harmonization of Australian accounting standards with international standards
- The role of Australian institutions in accounting standard-setting
- The future of Australian and international accounting
Chapter Summaries
Introduction: This introductory chapter sets the stage for the paper, outlining its objectives and scope. It highlights the significance of the topic, referencing recent accounting scandals to emphasize the need for robust and reliable accounting practices. The chapter introduces the key players and institutions involved in Australian accounting and briefly previews the structure of the paper, indicating its progression from the Australian accounting environment to the international landscape and the harmonization projects undertaken.
Accounting in Australia: This chapter details the evolution of accounting practices in Australia, tracing its path from a system of disparate state-level regulations to the adoption of a national framework in 1991 with the enactment of the Australian Corporations Law. The chapter highlights the key requirements of the Corporations Law regarding the presentation of “true and fair” financial statements and the legal definition of these statements. It underscores the establishment of a unified, national approach to corporate financial reporting, laying the groundwork for subsequent discussions on the integration with international standards.
Development of International Accounting: This section delves into the international developments in accounting standards. It examines the G4+1 group, its purpose, and the reasons for its dissolution, laying the groundwork for understanding the subsequent changes in the global accounting landscape and Australia's role within it. The establishment of the IASB and its impact on the harmonization efforts worldwide are discussed. This chapter lays the essential context for understanding the subsequent adoption and adaptation of international standards in Australia.
“Harmonisation Project”: This chapter extensively explores the various harmonization initiatives undertaken in Australia. It details the Australia-New Zealand harmonization efforts, the drive towards international harmonization, and instances of resistance or challenges to harmonization ("Contra Harmonisation"). The complexities and challenges associated with aligning national accounting practices with globally accepted standards are analyzed, offering a nuanced view of the process. The role of the public sector in this harmonization effort is also addressed, providing a complete overview of the project's multifaceted nature.
Keywords
Australian Accounting Standards, G4+1, IASB, Harmonization, International Accounting Standards, Australian Corporations Law, Financial Reporting, Public Sector Accounting, Accounting Regulation, International Accounting, Standard Setting.
Frequently Asked Questions: A Comprehensive Language Preview
What is the main topic of this paper?
This paper summarizes recent progress in accounting standardization, both internationally and within the Australian context. It focuses on the dissolution of the G4+1 group and its impact on Australia's accounting environment, and explores the future direction of international and Australian accounting practices.
What are the key themes explored in the paper?
Key themes include the development of Australian Accounting Standards post-G4+1, the impact of the G4+1 dissolution on Australia, the harmonization of Australian accounting standards with international standards, the role of Australian institutions in accounting standard-setting, and the future of Australian and international accounting.
What is the G4+1, and why is its dissolution significant?
The G4+1 was a group of standard-setters that played a key role in international accounting. Its dissolution significantly impacted the global accounting landscape and influenced changes in Australia's accounting environment. The paper examines this impact in detail.
What is the role of the IASB (International Accounting Standards Board)?
The IASB's establishment and its influence on worldwide harmonization efforts are discussed. Its role is central to understanding the adoption and adaptation of international standards in Australia.
What is covered in the chapter on "Accounting in Australia"?
This chapter details the evolution of accounting practices in Australia, from a system of state-level regulations to the adoption of a national framework in 1991. It highlights the key requirements of the Australian Corporations Law regarding "true and fair" financial statements.
What are the "Harmonisation Projects" discussed in the paper?
This section explores various harmonization initiatives undertaken in Australia, including Australia-New Zealand harmonization, the drive towards international harmonization, and challenges to harmonization. The role of the public sector is also addressed.
What is the significance of the "true and fair" view concept in Australian accounting?
The paper highlights the importance of the legal definition of "true and fair" financial statements within the Australian Corporations Law as a cornerstone of unified national corporate financial reporting and its integration with international standards.
What are the key takeaways from the chapter on the development of international accounting?
This chapter provides the context for understanding the adoption and adaptation of international standards in Australia by examining the G4+1 group, its purpose, and the reasons for its dissolution, as well as the establishment of the IASB and its impact.
What are the key words associated with this paper?
Key words include Australian Accounting Standards, G4+1, IASB, Harmonization, International Accounting Standards, Australian Corporations Law, Financial Reporting, Public Sector Accounting, Accounting Regulation, International Accounting, and Standard Setting.
What is the overall conclusion of the paper?
The paper offers a comprehensive overview of accounting standardization in Australia and its integration with international standards. The exact conclusions would require reading the full paper, which is not provided here.
- Citar trabajo
- Stefan Greite (Autor), 2003, The development of the Australian accounting standards after the end of the G4+1, Múnich, GRIN Verlag, https://www.grin.com/document/32600
