Differential reporting underpins the financial reporting system in Australia. A recent media release from the Australian Accounting Standards Board (AASB)* reveals that it has reviewed the Reduced Disclosure Requirements for Tier 2 Entities with the aim of simplifying disclosures and improving the usefulness of information provided by Tier 2 Entities.

*Australian Accounting Standards Board 2017, 'Improving reduced disclosure requirements for financial reports', available from http://www.aasb.gov.au/admin/file/content9/c14/MR_AASB_Improving_RDR_for_financial_reports_2F eb2017.pdf [2 February 2017]

Required:

You are required to research information on the issues below, and then write the results of your research in an essay format (introduction, body and conclusion).

1. Explain the differential reporting system in Australia. (Suggested word limit: three hundred words around
2. With reference to the Conceptual Framework for the Preparation and Presentation of Financial Statements, critically evaluate the impacts of the Reduced Disclosure Requirements on the two fundamental qualitative characteristics of information presented by Tier 2 Entities. (Suggested word limit:seven hundred words around
3. Conclude whether you perceive the benefits of the Reduced Disclosure Requirements outweigh the costs. (Suggested word limit: two hundred words around

You are required to use a minimum of five academic journal articles to support your discussion. The following is an example of an academic journal article that provides some background information to assist you when completing this essay:

Porter, B, Ravlic, T & Wright, S 2013, 'Developing accounting regulations that reflect public viewpoints: The Australian solution to differential reporting', Australian Accounting Review, vol. 23, no. 1, pp. 18-28.

Additional information:

You are expected to undertake research in order to complete task. Review of the above referred journal article can be a good point to start with. Your research must also include further primary-source references i.e. peer-reviewed journals and scholarly books (avoid Wikipedia type material).

Word Limit: should be around twelve hundred words (excluding references.

Must submit a properly referenced essay that complies with the Harvard referencing style. This includes in-text citations and a reference list.