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International Accounting Standards Board

   

Added on  2020-02-24

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Running head: ACCOUNTING STANDARDS CHANGE 1Accounting standards changeNameInstitution
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ACCOUNTING STANDARDS CHANGE 2Accounting Standards ChangeLiterature ReviewPart 1How AASB incorporate changes to international accounting standards In the year 2004, July, AASB enacted Australian equivalents to International Accountingstandards board. Subsequently, this act was by a financial reporting council strategic direction(Bauer, O'Brien & Saeed, 2014). In relation, the concept of Australian equivalents to IASBstandards achieve what is considered as the FRC’s directive pointing out at ensuring profitentities conform to standards set by AASB for reporting periods traceable after January 2005 toalso comply with the IASB standards. Consequently, the AASB continues to maintaincorrespondence with the IASB’s set standards to ensure that the strategic directive enacted by theFRC’s is met. Generally, the approach adopted by the AABS ensures that it also adopts thecontent and wording of the IASB standards. When there is the need to legalize an Australianlegislative environment, wordings may be changed. A comprehensive example includes the Australian application paragraph thataccommodates the Corporations Acts in 2001. The changes, however, did not influence theelement level of the requirements. In this case, the primary focus of the IASB’s is more inclinedtowards for-profit entities. The AABS, on the other hand, is in charge of setting the standards ofaccounting for all of the types of reporting entities needed. Also, supplementary texts which areidentified are contained within the AASB standards so as to deal with the cases where the needpresents itself to have different or additional requirements for the non-profit entities (Budding,Grossi & Tagesson, 2014). The additions however do not have a bearing on the requirementswith particular regards to for-profit entities.
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ACCOUNTING STANDARDS CHANGE 3In other cases, a not for profit firm that complies with the equivalents of Australia to thestandards of IASB may never be in a position to concurrently be in compliance such standards ofIASB since the supplementary necessities may unnecessarily be consistent with the IASBrequirements (Barker et al, 2014). The principal focus of the AASB is also to aim for the highestquality financial reporting in its adoption of the IASB standards. To this end, the AASBexclusively permits only a few optional treatments available in the IASB standards. Also, theAASB in some instances requires additional disclosure; an example includes a case where theadditional disclosure is already required under the IASB standards. In other cases also, theexisting AASB standards comprise critical interpretation which is unincorporated in thecorresponding standards of IASB. In this case, the AASB holds the interpretation as guide that ishowever not share of the standard in instances whereby it is said to benefit the users of AASBstandards. However, it should not dispute the equivalents of Australia content to the set standardsof IASB.Part 2: How the AASB incorporate local, Australian issues into the Australian accountingstandards AASB incorporates such issues into the accounting of Australia through the commitmentto development of public interest (Ordelheide, 2016). The AASB makes use of global accountingstandards are embedded in transparent and corresponding information found in the financialstatements. In order to exercise this objective, the body partners with others such as IASB so asto achieve convergence in accounting standards across the globe. International organization should first identify issue (technical)
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