... of the capital markets that will arise from the existence of a set of globally acceptable accounting standards that result in high-quality, comparable and transparent financial reporting' (Alfredson, 2003a; Alfredson, 2003b). At this point, both domestic and foreign investors will be better able to comprehend the information contained in Australian financial reports and make valid comparisons with alternative investment opportunities. Also, a large number of private and public sector entities of all kinds are obliged to prepare their financial reports under the provisions of AIFRS. These entities not only have to consider the technical issues involved in the transition to the new accounting standards, but also the potential effect on investor sentiment of the move to AIFRS. The major benefit of adopting of IFRS as 'financial statement comparability for investors, can reducing the cost of capital in Australia and improving access to foreign capital for Australian entities' (Knapp, 2003). But ...

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