What are the practical effects of the January 2005 adoption date?
The change to IAS will occur for reporting periods beginning on or after 1 January 2005. Entities will have to explain the main impacts that the change to IAS will have on them, and how they are managing those impacts, well ahead of this, in 2004. “Reporting entities” must prepare financial reports in compliance with accounting standards and regulations made by the AASB. Generally speaking, this includes all public companies, large proprietary companies, registered schemes and other forms of disclosing entities: see Chapter 2M.3 of the Corporations Act. With the AASB’s adoption in Australia of International Financial Reporting Standards (IFRS), which includes the IAS, reporting entities will have to prepare IFRS-compliant financial reports for reporting periods beginning on or after 1 January 2005. As a practical matter, this means that entities with a 30 June year end will have to compile IFRS-compliant data as from 1 July 2004 in order to present prior year comparatives for their fin
