A discussion on Australia's adoption of International Accounting Standards

In July 2002 the Financial Reporting Council (FRC) announced that it fully supported the adoption by Australia of the International Accounting Standards (IAS). The main, predicted, benefits of adopting the IAS were improved access to international capital flows and reduced financial reporting costs for Australian multinational companies. This announcement was in line with section 227 of the Australian Securities and Investments Act 2001 where the Australian Accounting Standards Board (AASB) was required to participate in the development of accounting standards for worldwide use. Australian reporting entities are now required to prepare their financial statements based on the Australian Equivalents of the International Accounting Standards. The following is a fictitious transcript of an interview, in June 2003, by Mr Kerry O’Brien from the ABC with Mr Peter Costello the Federal Treasurer of the Commonwealth of Australia.