Research and compare the role of AASB both before and after the changes referred to the above. This report analyses and sets out the role of the Australian Accounting Standards Board and also considers the main aims and purpose of AASB and hence drawing a conclusion as to whether AASB is a significant player or a toothless tiger. The Australian Accounting Standards Board is an Australian Government Agency and according to Deegan (2010), AASB is defined as the “body charged with developing conceptual framework for accounting practices, making and formulating accounting standards and participating in and contributing to the development of a single set of accounting standards for the world wide use”. Therefore AASB plays a very important role in the Australian Accounting Standards but however, since the Financial Reporting Council (FRC) has been imposed and also due to some legislative changes, the effectiveness of the AASB appears to have been neglected. AASB Background
Accounting Standards in Australia were originally developed by the professional accounting bodies and were enforceable under their ethic codes. The professional bodies then joined the Australian Accounting Research Foundation (AARF) in 1966 and this eventually encompassed both the Accounting Standards Board (ACSB) and the Public Sector Accounting Standards Board (PSASB). These boards worked in accordance and prepared standards for both private sector and public sector organisations. Then, at the start of 1984, the Accounting Standards Review Board (ASRB) was established by the Ministerial council for Companies and Securities to review the standards and give them the force of company law where it was approved by ASRB. This system then operated under the companies Act 1981.The ASRB then merged with ACSB in 1988 with the latter working closely with the PSASB. The ARSB was then re established under the Australian Securities Commission Act 1989 and in 1991, it was renamed as the Australian Accounting Standards Board (AASB) and the AASB’s laws were then applied under Corporations law. Another major change was in 2000 was the merging of AASB with Public Sector Accounting Standards Board (PSASB). The new AASB was officially re-established under the Australians securities and investments Commission Act 1989. The regulatory changes included the setting up of the Financial Reporting Council (FRC) by the government of Australia to manage the activities of the Australian Accounting Standards Board (AASB) that is FRC acts as an intermediary council between government departments. In simple words it means AASB reports to the FRC. The new AASB standards now apply under the Corporations Act 2001and the AASB continues to operate under the Australian Securities and Investments Commission Act2001. The FRC gave another direction to the AASB in 2002 requiring the adoption of pronouncements required by IASB. As it is the main aim and objective of the report is to focus on the change that occurred to AASB in 2005. A dramatical change in 2005 for the AASB was when it was required to formulate new International Financial Reporting Standards (IFRS) under FRC and this was compulsory for all Australian reporting entities. The function of AASB in 2005 was seen as very important and showed a way of direction of the International Accounting standards board (IASB). This in turn made some formerly developed Australian Accounting standards outdated, while the main aim of that was to meant to bring Australian Accounting Standards into global markets.
The Purpose, Objectives, Status of AASB and future prospects of AASB. The purpose, status and objective of Australian Accounting Standards Board before and after these changes will now be investigated. We will also examine the changes in the way they are perceived by other players in the accounting field. We will also discuss how these players view the Australian Accounting Standard Boards in terms of the current status and future...
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