Australian School of Business Australian Accounting Standards Board (AASB) The AASB is responsible for: • development of a conceptual framework • formulating accounting standards for the purpose of the Corporations Act • formulating accounting standards for other purposes (eg public and not-for-profit sectors) • participating in the development of a single set of accounting standards for worldwide use • promoting the main objectives of developing accounting standards 14
Australian School of Business AASB Accounting Standards Objectives of developing accounting standards are: • allows users to make decisions about the allocation of scarce resources • helps directors discharge their financial reporting obligations • is relevant to assessing performance, financial position, financing and investment • is relevant and reliable, facilitates comparability and is readily understandable 15
Australian School of Business Current standard-setting arrangements - AASB Accounting Standards AASB 1-99 – equivalent to IFRS standards issued by the IASB – have same number as equivalent IASB standard e.g. IFRS 2 > AASB 2 Share-Based Payment AASB101-199 – equivalent to IAS standards issued by the IASC (predecessor to the IASB) – have same number (+100) as the IAS standards on which they are based e.g. IAS 16 > AASB 116 Property, Plant & Equipment 17
Australian School of Business AASB Accounting Standards AASB1001-1099 – Australian standards with no international equivalents – Have same number as in previous AASB standard e.g. AASB 1031 Materiality 18
Australian School of Business International Accounting Standards Board, IASB Board (IASB) • Independent, privately funded accounting standard setter • Overseen by the IFRS Foundation • Established in 2001, replacing the International Accounting Standards Committee (IASC) • Committed to the development of a single set of high quality, enforceable global accounting standards 19
Australian School of Business Financial Accounting Standards Board (FASB) • US Accounting Standards body • Currently involved in a joint project with the IASB working towards a single set of compatible global accounting standards • Project commenced in 2002 and the commitment reaffirmed in 2010 • Long term project as there are many differences between US and international accounting standards 20
Australian School of Business IFRS Interpretations Committee • Sub-committee of the IASB • Considers issues of widespread importance not covered in IFRS standards • IFRS Interpretations are adapted by the AASB to suit the Australian environment 21
Australian School of Business Corporate regulators Australian Securities and Investments Commission (ASIC) – Established in 1989 by Australian Government – Enforce and Administers Corporations Act – Monitors implementation of the Act and investigates and prosecutes for breaches of the Act – Promotes confidence with the financial system Australian Securities Exchange (ASX) – Administers Listing Rules – Played a major role in influencing the move towards the AASBs adoption of IASB standards
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- Business, Balance Sheet, Share capital, International Financial Reporting Standards