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How prepared was Australia for international financial reporting standards? The case of listed firms

journal contribution
posted on 2008-03-01, 00:00 authored by J Goodwin, Barry CooperBarry Cooper, Shireenjit Johl
We measure the preparedness of listed firms for international financial reporting standards (IFRS) by changes in explanations from Australian GAAP to IFRS between the half-year and annual accounts. About one-third of sample firms changed their explanations for earnings, cashflows or equity by averages of about −7%, 67% and 3% respectively. Most changes are less than 5% for earnings and equity, and tax is the item most commonly revised. More profitable firms and firms with more reconciling items are most likely to change an explanation. In a telephone survey of chief financial officers, 70% revealed that the change followed an incorrect application of an accounting rule in the half-year accounts.

History

Journal

Australian accounting review

Volume

18

Issue

44

Pagination

35 - 45

Publisher

Blackwell Publishing Asia

Location

Richmond, Vic.

ISSN

1035-6908

eISSN

1835-2561

Language

eng

Publication classification

C1 Refereed article in a scholarly journal; C Journal article

Copyright notice

2008, CPA Australia

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