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Introduction According to the decision of Financial reporting council FRC announced in 2002 Australian entities have to be reported under the accounting standards which issued by the international accounting standards board IASB For achieving the single market objective it is essential to develop a single set of accounting standards Therefore IASB standards which are known as international financial reporting standards IFRSs have turned into Australian accounting standards Just during the period of adopting IFRSs arguments for or against this decision come from all around A lot of benefits are insisted by those who support the adoption of IFRSs They argue that 1 For companies high quality accounting standards promote their ability of accessing capital The continued strong expansion of the capital markets across national borders has become the key force favoring a single set of globally accepted accounting standards Donald T Nicolaisen 2005 Under the desires of achieving strong and stable capital markets from different countries reliable and transparent accounting and financial reporting are needed for decision-making of those providing capital Med 2004 Especially after the 1998 Asian economic crisis a single set of financial reporting standards renewed this expectation For example in order to access the worlds largest capital market------Americas capital markets the development of a strong set of international accounting standards will be helpful for non-US companies Those non-US companies who wish to issue securities in United States have been required to adopt US generally accepted accounting principles US GAAP or to harmonize their financial statements to US GAAP Timesonline 2004 It is undoubtedly time-consuming and increasing cost The IASB and the US standard-setter are now working together to eliminate differences between existing IFRS and US GAAP just like happened in Australia Russia etc The kind of unification in accounting standards between nations enable national companies to access foreign capital market more easily Timesonline 2004 2 For investors they can get more reliable financial data to compare and analyze
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