IFRS adoption: costs and benefits for large, listed Australian companies

Research output: Book chapter/Published conference paperConference paperpeer-review

4069 Downloads (Pure)

Abstract

The relevant academic and professional accounting literature contains a large amount of anecdote and conjecture concerning the potential costs and benefits of IFRS adoption for companies. This research paper documents the results of a survey aimed at exploring this anecdote and conjecture from the perspective of large, listed Australian companies. The survey was completed by CFO's from the Top 400 ASX listed Australian companies in late 2005/early 2006 as most firms were winding up their IFRS conversion projects. Some 107 (27.79%) useable responses to the survey were received.The large majority of respondents agreed that IFRS adoption had involved considerable cost for their firms. Despite this, only a limited number of respondents perceived that their firms would receive any significant benefits and would be cost-beneficial. Those critical of IFRS adoption, highlighted the increased complexity and uncertainty associated with financial reporting; questioned the underlying need for adoption given their firms lack of international exposure and investor satisfaction with existing standards; questioned the underlying drivers of IFRS adoption; and criticised the regulatory bodies for failing to consult with the business community in the lead up to the decision to adopt IFRS. The contributions of this study to the international accounting literature are particularly significant given the increasing number countries moving to adopt IFRS, despite the lack of prior research exploring the perceived costs and benefits of such moves for firms.
Original languageEnglish
Title of host publicationRole of accounting in organisational (and social) change
EditorsZahirul Hoque
Place of PublicationMelbourne, VIC
PublisherLaTrobe University
Pages1-41
Number of pages41
ISBN (Electronic)9781921377402
Publication statusPublished - 2008
EventGlobal Accounting and Organisational Change Conference (GAOC) - Melbourne, VIC, Australia
Duration: 09 Jul 200811 Jul 2008

Conference

ConferenceGlobal Accounting and Organisational Change Conference (GAOC)
Country/TerritoryAustralia
Period09/07/0811/07/08

Fingerprint

Dive into the research topics of 'IFRS adoption: costs and benefits for large, listed Australian companies'. Together they form a unique fingerprint.

Cite this