ACC03032 - Contemporary Issues in Accounting - Study

Running head: CONTEMPORARY ISSUES IN ACCOUNTING
Contemporary issues in accounting
Name of the University
Name of the student
Authors note

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CONTEMPORARY ISSUES IN ACCOUNTING
Executive summary:
The report is prepared to understand the changes that have been incorporated to AASB due to
several amendments introduced by IASB. It consist of two parts, in first part deal with
discussion on literature review about how the accounting standards are changing and how the
Australian standard are incorporating issues into their own accounting standards. Second part
of report deals with the impact of amendments introduced by IASB on company accounting.
Furthermore, recommendations are provided whether the one size fits all approach will be
beneficial for reporting entities.

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CONTEMPORARY ISSUES IN ACCOUNTING
Table of Contents
Introduction:...............................................................................................................................3
Discussion:.................................................................................................................................3
Part A:........................................................................................................................................3
Incorporation of IASB into AASB:............................................................................................3
Part B:.........................................................................................................................................8
Specific instances depicting whether accounting standard should change or not as recommend
by IASB:.....................................................................................................................................8
Recommendation:....................................................................................................................10
Conclusion:..............................................................................................................................11
Reference:................................................................................................................................12

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CONTEMPORARY ISSUES IN ACCOUNTING
Introduction:
The study takes insight into the changing relationship between the standard setter that
is International accounting standard boards (IASB) and Australian accounting standard board
(AASB).Pronouncements issued by International accounting standard boards are incorporated
in the Australian accounting standards. Relationship between the domestic standard setter and
IASB is changing for establishing more formal link between the regional and domestic group
of standard setters that is move currently motivated by trustees and IASB (Carey et al., 2014).
Original strategic model of IASB was mainly developed for creating strong relationship with
key standard setters and in this regard, Australia was one of the key standard setters.
Australia was at IASB gathering from the start of operations of IASB.
Discussion:
Part A:
Incorporation of IASB into AASB:
AASB has the responsibility of issuing and developing accounting standards that are
applicable to Australian entities along with maintenance and care of the body of standards. A
strategic decision was provided to the board for working towards those issued by
International accounting standard board. The Australian that is equivalent to IASB comprise
of accounting standards that are equivalent to Australian standards. Some of them can be
listed as AASB 1-99 corresponded to AASB 101-199. Furthermore, interpretations that are
issued by AASB are corresponds to the interpretations that has been adopted by IASB. In the
absence of any IASB equivalent such as standards like AASB 1039 and AASB 1031, the
accounting standards of AASB and IASB were retained (He et al., 2016).