Herz (2013) notes that the end of convergence will essentially bring about an era where IFRS is, for the most part, the de facto standard around the world. However, the process has also compelled the IASB to be more responsive to its constituents.
For Australians, involvement in ASAF signals the beginning of the final stages of convergence, where the remaining non-IFRS major economies are brought into the process. Many countries with GAAP has similar principles to each other, since their systems were influenced heavily one another. The AASB (2009) notes that Australia has been in line with the EU timetable for IFRS adoption. In this respect, Australia should be ahead of the United States. PWC (2013) notes that this is the case, at least for publicly-traded entities. Not-for-profits do not yet have to meet the provisions of IFRS reporting, and the same is true for public sector entities. Foreign companies listing on the ASX need to comply with Australian standards, which have a high level of convergence with IFRS. The status at present is that if a company registered in Australia is considered to be a reporting entity or not determines whether IFRS are required (they are for reporting entities). Further compliance may come at a later date, but it seems that the status in Australia right now is simply to work on full global convergence, but otherwise to wait and see how it plays out, since the country already has more or less adopted IFRS and will simply need to adjust its accounting practices to the extent that further convergence changes IFRS.
References
AASB. (2009). IFRS adoption in Australia. Australian Accounting Standards Board. Retrieved April 5, 2014 from http://www.aasb.gov.au/admin/file/content102/c3/IFRS_adoption_in_Australia_Sept_2009.pdf
FASB. (2014). International convergence of accounting...
Financial Accounting Standards Board. Retrieved April 5, 2014 from http://www.fasb.org/jsp/FASB/Page/SectionPage&cid=1176156245663
Hail, L, Leuz, C. & Wysocki, P. (2010). Global accounting convergence and the potential adoption of IFRS by the U.S.: Conceptual underpinnings and economic analysis. Accounting Horizons. Vol. 24 (3) 355-394.
Herz, R. (2013). End of convergence brings challenges and opportunities. Compliance Week. Retrieved April 5, 2014 from http://www.complianceweek.com/end-of-convergence-brings-challenges-and-opportunities/article/307946/
IFRS. (2013). Convergence between IFRS and U.S. GAAP. IFRS. Retrieved April 5, 2014 from http://www.ifrs.org/Use-around-the-world/Global-convergence/Convergence-with-U.S.-GAAP/Pages/Convergence-with-U.S.-GAAP.aspx
IFRS Foundation. (2014). ASAF Membership. IFRS Foundation. Retrieved April 5, 2014 from http://www.ifrs.org/the-organisation/Advisory-bodies/ASAF/Pages/ASAF-Membership.aspx
Pologeorgis, N. (2013). The impact of combining the U.S. GAAP and IFRS. Investopedia. Retrieved April 5, 2014 from http://www.investopedia.com/articles/economics/12/impact-gaap-ifrs-convergence.asp
PWC. (2013). IFRS and GAAP: similarities and differences. Price Waterhouse Coopers. Retrieved April 5, 2014 from http://www.pwc.com/us/en/issues/ifrs-reporting/publications/ifrs-and-us-gaap-similarities-and-differences.jhtml
PWC. (2013).IFRS adoption by country. Price Waterhouse Coopers. Retrieved April 5, 2014 from http://www.pwc.com/en_US/us/issues/ifrs-reporting/publications/assets/pwc-ifrs-by-country-apr-2013.pdf
Wustermann, J. & Kierzak, S. (2005). Revenue recognition under IFRS revisited: Conceptual models, current proposals and practical consequences. Accounting in Europe. Vol. 2 (1) 69-106
