Adoption of IFRS in Australia: Implications for academics

1
Adoption of IFRS in Australia Implications for
academics

• Ann Tarca
• University of Western Australia

2
Overview

• Background
• Adoption in Australia
• Approach to transition - What did we do?
• Technical skills resources
• Curriculum
• Comments on adoption What was our experience?

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Adoption in Australia

• Adoption from 1 January 2005
• Full set of IFRS adopted
• Verbatim adoption with amendments for public
  sector entities
• Standards apply to all reporting entities as
  defined in law, including all listed companies
• IAS/IFRS AASB
• We have only one set of accounting standards

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Background

• Prior AASB had many similarities with IASB
  standards.
• We had a harmonisation program through the 1990s
• Adoption first proposed for 1998
• Most of the change in adopting IFRS came from
  the new standards
• Financial instruments, share based payment

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Transition - skills resources

• 1) develop your IAS/IFRS skills
• Own knowledge base identify your strengths and
  weaknesses
• Academic research identify relevant (helpful)
  research for you
• Professional development with accounting firms,
  professional accounting seminars and conferences
• Professional development with other academics,
  e.g. in-house or inter-university regional
  seminars or conferences

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Skills resources

• 2) Identify IAS/IFRS resources
• Our standards listed the differences (AASB vs
  IAS)
• Textbooks are now available
• Early book Alfredson et al John Wiley and Sons
  Applying International Accounting Standards
• Professional accounting firms
• Websites commentary, updates
• IAS vs national GAAP comparisons
• IAS model financial statements
• IASPlus by Deloittes www.iasplus.com

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Transition - curriculum

• Decisions about what is taught
• National, international, both
• Over a three year period I taught
• (a) AASB (old)
• (b) AASB and IAS/IFRS (both)
• Highlight changes and differences
• (c) Australian equivalents to IFRS (new)

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Approaches to Curriculum

• 1) look at big picture
• Highlight major similarities
• E.g. common principles conceptual framework, use
  of fair value
• E.g similar standards financial instruments,
  share based payment
• Note differences
• E.g. remeasurement for property, plant and
  equipment capitalisation of development
  expenditure
• 2) selected areas provide focus
• Choose topical or important areas
• Aim Basics are covered and further detail is
  learned on the job

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Comments on the Australian experience

• One set of (principles based) standards for all
  companies
• Plenty of lead time
• Advice?
• It takes time to build up the skills, see it as a
  medium term project
• Select a few topics at first, develop them over
  time, then add further topics
• Seek training opportunities from a range of
  sources