Foundations of Accounting

Running head: FOUNDATIONS OF ACCOUNTING
Foundations of accounting
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1FOUNDATIONS OF ACCOUNTING
Table of Contents
Part A.........................................................................................................................................2
Part B..........................................................................................................................................4
Part C..........................................................................................................................................4
Part D.........................................................................................................................................5
Reference....................................................................................................................................8

2FOUNDATIONS OF ACCOUNTING
Part A
Roles of below mentioned regulators
a. Financial reporting council (FRC)
FRC is the statutory body that is responsible for offering broad oversight of the
procedure required for setting the accounting standards in Australian and providing minister
advice and reports regarding that procedure. It is responsible for supervising effectiveness of
Australian financial reporting framework (Frc.gov.au 2019). Major roles of FRC are –
 Supervising the procedure of auditing and accounting standard setting for private and
public sectors
 Providing the strategic advice regarding audit quality that is conducted by the
Australian auditors and advising ministers regarding this and associated matters to the
extent it impact Australian reporting framework
 Monitors development of the international auditing and accounting standards
 Works for promoting development of single set of the auditing and accounting
standards for its use all over the world and promoting its adoption (Frc.gov.au 2019).
b. Australian Accounting Standards Board (AASB)
AASB is the agency of Australian government that updates and provides standards for
private as well as public sector financial reporting for the Australian organization. It works
for facilitating interactions among global economy and Australian business and contributes to
development of the global standards for financial reporting (Aasb.gov.au 2019). Major roles
of AASB are –
 Developing conceptual framework for evaluating the proposed standards
 Making accounting standards under the section 334 of Corporations Act 2001
 Formulating accounting standards for various other purposes
 Participating and contributing to development of single set of the accounting
standards for using it all over the world
 Advancing and promoting main object of ASIC Act, part 12 that includes reduction of
capital cost, allowing the Australian companies in competing overseas efficiently and
maintaining the confidence of investors in Australian economy (Aasb.gov.au 2019).