By adopting the accounting standards issued by the International Accounting Standard Board, the below are the justification in support of adotping the same for Australian companies: 1) It would bring in transparency in reporting of financial statements and comparability of finanical statements which would lead investors and other users of financial statements to make more informed decision.

2) It would also reduced any information gap and strengthen the reporting requirements so that the people who have been entrusted with the money are held accountable to the provi