CPA Australia supports removing differences with IFRSs

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17 Mar 2007

CPA Australia has expressed strong support for the decision of the Australian Accounting Standards Board (AASB) to remove the differences between 'Australian Equivalents to IFRSs' (A-IFRSs) and IFRSs as adopted by the IASB.

When the AASB originally adopted A-IFRSs, it had eliminated some accounting policy options available under IFRSs and had added a sizeable number of Australia-specific disclosures. In its recent Exposure Draft 151, the AASB has proposed to undo those differences. In a Letter to the AASB  (PDF 53k), CPA Australia wrote:

CPA Australia strongly supports the AASB's decision to have the same requirements as in the International Financial Reporting Standards (IFRS) in respect of for-profit entities.... CPA Australia considers that in order for for-profit entities to obtain the full benefits of the Australian adoption of IFRSs, it is important that the same requirements as IFRSs are in the AIFRSs. Some of our members have expressed to us their concern that some of the options within IFRSs do not result in the highest quality financial reporting. We understand their concerns. However, following our analysis of all the options within IFRSs we do not think that any of those options require the AASB when acting in accordance with section 227 of the Australian Securities and Investment Commission Act 2001 to temper the operation of the Financial Reporting Council's directive to the AASB as it relates to for-profit entities – "...the accounting standards applicable to reporting entities under the Act will be the standards issued by the International Accounting Standards Board...".

Click for CPA Australia Press Release (PDF 18k).

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