Any potential benefits and negative impacts of adopting the IFRSs for Coursework

Any potential benefits and negative impacts of adopting the IFRSs for the country; - Coursework Example The IFRS adoption move was encouraged by the 1995 European Commission’s report considerations (Accounting Harmonization: New strategy with regard to global harmonization), however, it resulted from some more far reaching program for corporate reforming that was introduced by the government of Common Wealth under sponsorship of CLERP (The Cooperate law Sponsorship Program). The major aim for adopting the standards for Australia was to enhance information quality on corporate performance. This paper looks at the benefits resulting from the adoption of the standards as well as any challenges, negative impacts or limitations that the country has faced in the implementation as well as maintenance of the International Financial Reporting Standards in Australia. Consistency- change IFRS will provide many bonuses to Australian companies. Among the most beneficial areas for adopting IFRS is uniformity. Consistency happens to be the major reason why most companies as well as nations are currently adopting IFRS. In simple words, Australia’s adoption of IFRS provide the companies within the country internal uniformity, something, which reduces cost of reporting (Anna, 2013). As the key aim for IFRS is uniformity, it places every person within a similar level globally as far as preparing financial standards is concerned. For Australia, this will enable firms to display financials at some similar levels as their international competitors. Better Capital Markets- through the adoption of IGRS, Australian companies are place within the international market place. His helps in the promotion for new trade as well as well as assessing capital markets. Companies within the country will have a chance of being recognized to be an international player within the capital market (CYNTHIA, 2009). Improved international communication- adoption of IFRS by Australia will ensure reliable financial reporting. As a result, Australian large companies will be apply