Progress and Obstacles International Accounting and Auditing Standards Harmonization in Australia
Introduction This is a research to examine the progress and obstacles of international harmonization of accounting and auditing standards in Australia over the last five years. The purpose of this research is to explore the benefits and difficulties of international harmonization by analysing the progress and obstacles during the process. The Australian Accounting Standard Board (AASB) is implementing the Financial Reporting Council¡¯s (FRC) policy of converging AASB standards with those of the International Accounting Standards Board (IASB). ... Before that date AASB tries to change or amend certain standards to harmonise with IASB. Meanwhile, the Auditing and Assurance Standards Board (AuASB) is also complying with International Standards on Auditing (ISAs) by amending or changing auditing standards. This issue is the best example to describe the conception of international harmonization. However, many obstacles are also met during the process of harmonization, such as the risk of harmonization and some less comprehensive IASB standards. The Progress of Accounting Standards in Australia One of the important progresses is in the Accounting Exposure Draft 93 (ED93) ¡®Statement of Financial Performance and Ancillary Amendments¡¯ in 1998 (www. ... AASB amended its AASB1018 ¡®Profit and Loss Accounts¡¯ to harmonise with International Accounting Standards IAS8 ¡®Net Profit or Loss for the Period Fundamental Errors and Changes in Accounting Policies¡¯. ... Therefore, harmonizing with IAS8, externally speaking advanced international harmonization of accounting standards, while it domestically promoted the reliability and relevance of accounting information. The Progress of Auditing Standards in Australia Except for accounting standards, the AuASB also released its policy on harmonization and convergence with International Standards on Auditing (ISAs). ... au, Auditing Hand Book 2003) For example, in November 2002, AuASB combined four International Federation of Accountants Exposure Drafts. ... The amendment could improve audit quality by accurately assessing the auditing risk and coherently arranging the auditing procedures.