Accounting Standards and Co-operatives

From 1 January 2005 Australia will adopt the International Financial Reporting Standards (IFRS). All entities governed by the Corporations Law will be subject to these new international accounting standards.

The adoption of IFRS involves the introduction of new standards and amendments to many current Australian Accounting Standards.

Under state co-operative legislation in Australia, co-operatives are required to prepare accounts and consolidated accounts in accordance with any accounting standards in force under the Corporations Law.

The IFRS was established by the International Accounting Standards Board (IASB). The IASB was established in 2001. The objectives of the IASB are to:

• to develop, in the public interest, a single set of high quality, understandable and enforceable global accounting standards that require high quality, transparent and comparable information in financial statements and other financial reporting to help participants in the various capital markets of the world and other users of the information to make economic decisions.
• to promote the use and rigorous application of those standards; and
• to work actively with national standard setters to bring about convergence of national accounting standards and IFRS to high quality solutions.

Co-operatives should consult with their accountants to determine the impact of IFRS. what the new standards and amendments are and how this will impact on financial reporting and consolidated systems. Boards and manager have an obligation to understand the new reporting requirements.

Resources:

Australian Accounting Standards Board

CPA Australia

Last updated: 24-Jul-2003 10:21 PM