According to Tarca (2012, p. 8), “In the case of Australia and New Zealand policy makers considered that the future growth of their small domestic capital markets required international investment, which would be promoted by use of IFRS. In Australia, the decision was broadly supported in the business communities though not necessarily by all individual companies (Brown and Tarca, 2001)”.
(a) Critically explain the above statement.
(b) Do you think all the reporting entities have benefited from adopting International Financial Reporting Standards (IFRS) in Australia?
Note 1: Word limit for Question 1 is 1,000.
Note 2: Professional marks will be awarded for format, clarity and expression.
Note 3: The presentation of Question 1 should include Introduction, Discussion, Conclusion and List of references.