Week 01 Annotated Solutions.docx - WEEK 01 WORKSHOP SUGGESTED SOLUTIONS ACC2CRE CORPORATE REPORTING Chapter – 01 An overview of the Australian

Week 01 Annotated Solutions.docx - WEEK 01 WORKSHOP...

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WEEK 01 WORKSHOP SUGGESTED SOLUTIONS ACC2CRE: CORPORATE REPORTING Chapter – 01: An overview of the Australian external reporting environment RQ : 1.1, 1.2, 1.3, 1.6, 1.9, 1.16; CQ : 1.22 Chapter – 02: The conceptual framework for financial reporting RQ : 2.1, 2.5, 2.6, 2.15, 2.16, 2.18, 2.20, 2.24; CQ : 2.30 Online practice exercises available through McGraw-Hill Connect Chapter – 01: An overview of the Australian external reporting environment Review Questions 1.1 Describe the roles of ASIC, the AASB, the ASX and the FRC and the relationships between these regulatory bodies The main bodies responsible for regulating accounting disclosure in Australia are: (i) Australian Securities and Investments Commission (ASIC) On its website, ASIC describes some of its responsibilities as follows: We are an independent Commonwealth Government body. We are set up under and administer the Australian Securities and Investments Commission Act 2001 (ASIC Act), and we carry out most of our work under the Corporations Act. The Australian Securities and Investments Commission Act 2001 requires us to: maintain, facilitate and improve the performance of the financial system and entities in it promote confident and informed participation by investors and consumers in the financial system administer the law effectively and with minimal procedural requirements enforce and give effect to the law receive, process and store, efficiently and quickly, information that is given to us make information about companies and other bodies available to the public as soon as practicable. The Corporations Act , which is administered by ASIC, requires corporations to comply with accounting standards (as per s. 296 of the Corporations Act ). Hence, the law administered by ASIC requires companies and other disclosing entities to comply with the accounting standards issued by the AASB. (ii) Australian Accounting Standards Board (AASB) The role of the AASB is to develop a conceptual framework. It is also responsible for ‘making’ accounting standards that have the force of law under the corporations legislation, as well as formulating accounting standards that are to be used by reporting entities that are not governed by corporations legislation, inclusive of entities operating in the not-for-profit sector and public sector entities. The AASB is also responsible for Page 1 of 12
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Interpretations Advisory Panels, focus groups (user focus groups and not-for-profit focus groups) and project advisory panels. As indicated in Chapter 1, however, a great deal of the responsibility for developing accounting standards released by the AASB is in the hands of the IASB, as is the development of the conceptual framework. It is to be anticipated that only minor changes would be made to standards being released by the IASB before they are subsequently released within Australia as AASB standards (for example, the changes might involve adding more explanatory material to the Australian standard, or to add additional requirements in relation to not-for-profit or public sector entities). The AASB does
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  • '19
  • jane smith

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