The Australian and International Regulatory Framework
Could it cost more for an Australian company to raise capital on the global markets because Australian accounting rule makers are not moving swiftly enough to convert to international accounting standards?
The scenario of Australian corporate funding costs rising because our accounting standards are out of line with those of some other countries might become reality, says PricewaterhouseCoopers partner Jan McCahey, if urgent steps are not taken to bring Australian accounting requirements in line with those of the International Accounting Standards Board (IASB).
McCahey, one of Australia’s pre-eminent financial reporting experts, believes the domestic accounting standard setter, the Australian Accounting Standards Board (AASB), needs to move more quickly to ensure there are as few differences as possible between the international accounting standards framework and the domestic literature.
Otherwise, notes McCahey, Australia and its business community will continue to lag behind international developments and be unable to keep in step with the rapid-fire pace at which the London-based standard setter is moving. Read more…