Many jurisdictions in the Asia-Oceania region will be converging with the International Financial Reporting Standards (IFRS) over coming years. Some jurisdictions have already adopted the IFRS since 2005, while others such as Malaysia, Indonesia and Singapore have set the year 2012 as the target year for the full adoption/convergence of IFRS.
The 20011 Year is the crucial year for these jurisdictions moving to IFRS, as it is the year of final preparation. Accordingly, regulators and accounting standard setters in the region face challenges in adopting the international standards.
At the 5th International Financial Reporting Standards Regional Policy Forum 2011 held in Bali, Indonesia recently, participants from 21 jurisdictions discussed several issues and issued a Comminique stating the following outcomes of the meeting:
1. Participants reaffirmed their commitment to the goal of ultimate adoption of IFRS and to achieve one global set of high quality accounting standard.
2. Participants agreed that this goal may need to be facilitated through a process of convergence.
3. Participants agreed that the accounting standard setters in Asia-Oceania region need to work together more closely to increase the regional voice and concerns. The Asia Oceania Standard Setters Group would be an excellent forum for standard setters in the region to deliberate common issues in the regional market place.
4. Participants agreed that local standard setter bodies will play a more important role as partner of IASB by proactively providing advice to the IASB of local issues and concerns.
5. Participants agreed that the voice of Asia Oceania region should be increasingly important in shaping the future of IFRS.
6. Participants share the similar concern that IFRS adoption is not just an accounting issue. To implement IFRS successfully, the support of the Government and other regulatory and policy bodies is critical.
7. Participants shared the similar concern of the increasing awareness among investors demanding IFRS based financial statement. This investor demand is important
especially for companies seeking global capital investor.
8. All participants agreed that it is very important that Taxation Law takes account of IFRS.
9. The delegates also acknowledged the success of the 5th IFRS Regional Policy Forum, including the leadership and professionalism of the administration provided by the Indonesian Institute of Accountants.
IFRS Regional Policy Forum was intended to bring together policy makers, regulators and national standards setters from jurisdictions in different stages of their IFRS adoption roadmap to share and learn from one another’s experiences in adopting the global standards, both the challenges faced and in taking advantage of opportunities offered.
The 21 jurisdictions delegates that attended the forum were Australia, New Zealand, Malaysia, Japan, China, Hong Kong, Singapore, Korea, Pakistan, Cambodia, India, Indonesia, Philippines, UK, USA, Iraq, Macau, Myanmar, Brunei Darussalam, Thailand and Maldives.
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