Preview

Research and Compare the Role of Aasb

Better Essays
Open Document
Open Document
3380 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Research and Compare the Role of Aasb
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


References: http://www.cpaaustralia.com.au/cps/rde/xbcr/cpa-site/ED_193.pdf http://www.deloitte.com/view/en_AU/au/services/assurance/accountingtechnical/accountingalerts/accountingalertsarchive/3b6ae33d390fb110VgnVCM100000ba42f00aRCRD.htm http://www.aasb.com.au/admin/file/content102/c3/ACCPS5_07-01.pdf
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Powerful Essays

    Sarbanes Oxley Memo
    • 1426 Words
    • 6 Pages

    Sarbanes Oxley Memo

    The Financial Accounting Standards Board (FASB), is a professional standards board created by accountants to establish Generally Accepted Accounting Principles (GAAP),…

    • 1426 Words
    • 6 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    Acc222 Unit 2 Assignment
    • 539 Words
    • 3 Pages

    Acc222 Unit 2 Assignment

    In view of the large number of entities lodging special purpose financial statements with ASIC, the AASB are of the view that the reporting entity concept in SAC 1 Definition of the Reporting Entity has not been applied correctly. The future At their April 2013 meeting, the AASB discussed the future role of the reporting entity concept. There was general agreement that: They (AASB) would use the reporting entity concept as a basis for their own deliberations in setting general purpose financial reporting requirements Other regulators could use the reporting entity concept to identify entities that should be required to prepare and lodge general purpose financial statements They would change their application focus of Australian Accounting Standards from the reporting entity concept to that of general purpose financial statements. There was also general agreement amongst the board members that: The AASB’s mandate is to set accounting standards for preparing general purpose financial statements under Tier 1 or Tier 2, and Setting requirements for special purpose financial statements is a matter to be agreed between…

    • 539 Words
    • 3 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    Gasb and Fasb Analysis Paper
    • 631 Words
    • 3 Pages

    Gasb and Fasb Analysis Paper

    Since 1973, the Financial Accounting Standards Board (FASB) has been the designated organization in the private sector for establishing standards of financial accounting. Those standards govern the preparation of financial statements. They are officially recognized as authoritative by the Securities and Exchange Commission (SEC) (Financial Reporting Release No. 1, Section 101, and reaffirmed in its April 2003 Policy Statement) and the American Institute of Certified Public Accountants (Rule 203, Rules of Professional Conduct, as amended May 1973 and May 1979). Such standards are important to the efficient functioning of the economy because investors, creditors, auditors, and others rely on credible, transparent, and comparable financial information.…

    • 631 Words
    • 3 Pages
    Good Essays
    Read More
  • Good Essays

    Financial Accounting Standards Board Analysis Paper
    • 704 Words
    • 3 Pages

    Financial Accounting Standards Board Analysis Paper

    The purpose of this paper is to review, compare, and show the contrast between the two accounting standard boards; Governmental Accounting Standards Board (GASB), and the Financial Accounting Standards Board (FASB). The objectives of both Boards will be discussed as well as similarities and differences with each. The topic will then review modified accrual basis of accounting and how it differs from full accrual accounting.…

    • 704 Words
    • 3 Pages
    Good Essays
    Read More
  • Better Essays

    Acc 541 Accounting Standards Board Research Paper
    • 1149 Words
    • 5 Pages

    Acc 541 Accounting Standards Board Research Paper

    The FASB has been establishing accounting standards for the private sector ever since 1973, when it was formally formed. The FASB is documented as the commanding team by the American Institute of Certified Public Accountants and the Securities and Exchange Commission. The FASB is a private organization. The FASB is predominantly responsible for the establishment of accounting rules and reporting standards. The main assignment of the FASB is to improve accounting standards and to ensure that financial reporting is correct. The FASB oversees that reporting from nongovernment entities provides useful…

    • 1149 Words
    • 5 Pages
    Better Essays
    Read More
  • Good Essays

    summary of The Accounting Standards Setting Process in the U.S.: Examination of the SEC-FASB Relationship
    • 497 Words
    • 2 Pages

    summary of The Accounting Standards Setting Process in the U.S.: Examination of the SEC-FASB Relationship

    Evidence of the FASB working with the SEC to set standards has been obvious since the FASB’s establishment in 1973 where it is known that they discussed the development of new standards. Even if one were to believe the FASB and SEC did not work together, evidence still points in the direction of the FASB being aware of what the SEC wanted and setting standards to appease the SEC. The views and opinions of the SEC’s chief accountants and members were given in speeches and the SEC publishes its accounting positions therefore the FASB knew what the SEC wanted in its standards. Members and chief accountants from the SEC have also become members of the FASB’s advisory council and obtained other positions working with and for the FASB which shows behind closed doors the SEC and FASB were collaborating.…

    • 497 Words
    • 2 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    Fasb Convergence
    • 543 Words
    • 3 Pages

    Fasb Convergence

    IASB was formed in 1973 under the name International Accounting Standards Committee. Its mission was to formulate and publish in the public interest basic standards to be observed in the presentation of audited accounts and financial statements and to promote…

    • 543 Words
    • 3 Pages
    Satisfactory Essays
    Read More
  • Better Essays

    Navirn
    • 1265 Words
    • 6 Pages

    Navirn

    There been conflict in most western countries between private sector bodies and the governmental bodies concerning the process of establishing regulatory arrangements required for setting accounting standards (Hopwood et.al 2005). The recent changes by the Australian Federal Government regarding the structure of setting the accounting standards show a huge shift in power to the government from the professional bodies. Majority of the users of financial reports often try to influence the accounting standard with the aim of protecting their own interests. Standard setters in Australia are having diminished roles in international standard setting as the government which involves politics has taken over the setting and regulation of accounting standards as noted by Jorissen et.al (2007). This means that politics highly influences accounting regulations development.…

    • 1265 Words
    • 6 Pages
    Better Essays
    Read More
  • Best Essays

    ACC3AFA study guide 2013
    • 7066 Words
    • 29 Pages

    ACC3AFA study guide 2013

    The aim of this Subject is to promote an understanding of some of the major contemporary issues associated with the measurement and reporting of the operating results and financial position of modern reporting entities. Topics on foreign currency transactions, superannuation, financial instruments, construction contracts and other topical issues will be covered within the context of recent recommendations of the Australian accounting profession. The role of theory in accounting will also be covered.…

    • 7066 Words
    • 29 Pages
    Best Essays
    Read More
  • Better Essays

    Acc 541 Accounting Standards Board Paper
    • 1115 Words
    • 5 Pages

    Acc 541 Accounting Standards Board Paper

    The significance of the FASB can be realized by examining the history of formalized accounting theory development. The first organization to officially begin research on accounting standards and theory was the American Accounting Association (AAA) in 1935. This group was formerly the American Association of the University Instructors in Accounting (AAUIA), formed in 1916 to develop accounting curriculum. In 1936, the American Institute of Certified Public Accountants (AICPA) was formed by merging the American Society of Certified Public Accountants and the American Institute of Accountants (AIA). The AICPA formed the Committee on Accounting Procedure (CAP) in 1936 to establish generally accepted practices. The official pronouncements of the CAP were Accounting Research Bulletins (ARBs). In…

    • 1115 Words
    • 5 Pages
    Better Essays
    Read More
  • Good Essays

    Federal Accounting Standards Advisory Board (FASB)
    • 424 Words
    • 2 Pages

    Federal Accounting Standards Advisory Board (FASB)

    The relatively unknown Federal Accounting Standards Advisory Board (FASAB) is responsible for setting accounting standards for federal entities. Since the GAO began auditing financial statements from a number of large federal agencies in 1997, the importance of FASAB’s standards has become more apparent. Similarly, as corporations transact more international business, the influence of the International Accounting Standards Board (IASB), which sets cross-border standards, has grown. As FASB and the IASB work toward the convergence of their differing standards, the line between U.S. GAAP and a truly global set of accounting principles will blur. To be prepared, CPAs should become familiar with all major standards…

    • 424 Words
    • 2 Pages
    Good Essays
    Read More
  • Good Essays

    Fasb Convergence
    • 1091 Words
    • 5 Pages

    Fasb Convergence

    In 2001, the IASC was replaced by the IASB “(Schroeder, Clark, & Cathey, 2011, p. 82). The IASB wants to formulate and publish accounting standards and to promote them globally. The IASB currently consists of 15 individuals appointed by the trustees. The membership is based on the technical expertise. “On December 17, 2003, the IASB published 13 revised International Accounting Standards (IASs), reissued two others, and gave notice of the withdrawal of its standard on price level accounting. The revised and reissued standards mark the near completion of the IASB’s Improvements Project “(Schroeder, Clark, & Cathey, 2011, p.…

    • 1091 Words
    • 5 Pages
    Good Essays
    Read More
  • Powerful Essays

    ACC Standards
    • 1442 Words
    • 5 Pages

    ACC Standards

    The FASB is used broadly in the United States. FASB sets General Accept Accounting Principles (GAAP). It was established by the AICPA because of the recommendation the Wheat Committee in 1973. FASB has responsibility to set accounting standards for a public company. The members of the FASB are full-time employees from various organizations such as the American Accounting Association; the AICPA; the Association for Investment Management and Research; the Financial Executives Institute; the Government Finance Officers Association; the Institute of…

    • 1442 Words
    • 5 Pages
    Powerful Essays
    Read More
  • Better Essays

    Accounting: the Financial Accounting Standards Board (Fasb)
    • 1170 Words
    • 5 Pages

    Accounting: the Financial Accounting Standards Board (Fasb)

    The FASB is part of a structure that is independent of all other business and professional organizations. Before the present structure was created, financial accounting and reporting standards were established first by the Committee on Accounting Procedure of the American Institute of Certified Public Accountants and then by the Accounting Principles Board, also a part of the AICPA. Pronouncements of those predecessor bodies remain in force unless amended or superseded by the FASB.…

    • 1170 Words
    • 5 Pages
    Better Essays
    Read More
  • Satisfactory Essays

    Fasb Convergence
    • 388 Words
    • 2 Pages

    Fasb Convergence

    “The FASB’s mission is to establish and improve standards of financial accounting and reporting for the guidance and education of the public, including issuers, auditors, and users of financial information”(Schroeder et al., 2011, p. 9). The International Accounting Standards Board (IASB) which is an independent private sector body; was formed in 1973 for the purpose of simplifying the process of international business’s financial reporting and to harmonize and coordinate the countries engaged in setting accounting standards. “The goal of the FASB’s Short term International Convergence Project is to remove a variety of individual differences between U.S. GAAP and the International Financial Reporting Standards (IFRS) that are not within the scope of other major projects”(Schroeder et al., 2011, p.…

    • 388 Words
    • 2 Pages
    Satisfactory Essays
    Read More

Related Topics