Catalog Home Page

The effect of IFRS adoption on the financial reports of local government entities

Ahmed, K. and Alam, M. (2012) The effect of IFRS adoption on the financial reports of local government entities. Australasian Accounting Business and Finance Journal, 6 (3). pp. 109-120.

Link to Open Access version:
*No subscription required


This paper aims to analyse the changes in accounting surplus (loss), equity and assets, and liabilities as a result of accounting policy changes from the Australian Accounting Standards (AAS) to the International Financial Reporting Standards (IFRS) in Australian local government entities. Using the reconciliation notes disclosed by 117 local government entities, evidence is provided on the effects of IFRS adoption by identifying the key items that of difference between IFRS and AASB. The results show some differences between two sets of accounts prepared under these different accounting standards. While the average surplus (loss) of local councils has decreased, their equities, assets and liabilities have increased, with no major significant changes in their overall financial position, except for liabilities. These results indicate the possible consequences of the adoption of IFRS by local government entities in other countries on performance indicators who have or are yet to implement these standards.

Publication Type: Journal Article
Murdoch Affiliation: School of Business
Publisher: School of Accounting and Finance, University of Wollongong
Copyright: Australasian Accounting Business and Finance Journal and Authors
Publishers Website:
Item Control Page Item Control Page