Report - Accounting Standards Change - BU 397
Added on 2020-03-04
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Running head: CONTEMPORARY ACCOUNTING THEORYContemporary accounting theoryName of Student:Name of University:Author’s Note:
1CONTEMPORARY ACCOUNTING THEORYExecutive SummaryThe report has addressed on the several considerations made for changes pertaining to theaccounting standards. It has been further able to show the different aspects of the change in termsof standards perceived. The first part of the report has addressed to make the relevant changesassociated incorporating the change to international accounting standards into the Australianaccounting standards. The latter part of the report has identified the impact on companyaccounting if the recommended the changes are written into IAS 116/AASB 116. It has furthershown the rationale for adopting the change in the international perspective or nationalaccounting boards such as the AASB. The main findings has revealed that IASB standards hasbeen further seen to be based on the several types of the standards of the adoption which hasbeen seen to be based on the ensuring the profit applied by IASB to achieve the FRC strategicdirection for ensuring the application for the various types of the clause with the considerationswhich has been made to ensure the application of AASB standards for reporting periodsbeginning on or after 1 January 2005 and the same is seen to comply with IASB standards. Theaforementioned exposure a draft relates to the various changes has been associated to theamendment of “IAS 16 Property, Plant and Equipment”. The main impact of this draft has beenseen in form prohibiting the companies to deduct the various types of the cost which has beenseen to be related to the cost of an item or property, plant or equipments and any proceedsaccumulated from the sales produced while bringing the asset to the location and the conditionfor the operations intended by the management. The main formulation of the draft will be able torecognise the sales from the profit or loss.
2CONTEMPORARY ACCOUNTING THEORYTable of ContentsReport Body.....................................................................................................................................3Part A Literature Review.............................................................................................................3AASB incorporating changes to IASB........................................................................................3AASB incorporation of local, Australian issues into the Australian accounting standards........5Part B Report...............................................................................................................................8Impact on company accounting if the recommended changes are written into IAS 116/AASB116...............................................................................................................................................8Impact of the change on countries with higher exposure to manufacturing operations..............9Rationale for incorporation of the changes in international standards or AASB......................10Recommendations..........................................................................................................................11References......................................................................................................................................12
3CONTEMPORARY ACCOUNTING THEORYReport BodyPart A Literature ReviewAASB incorporating changes to IASBThe report is intended to show the various types of the changes pertaining to theaccounting standards. It has been further able to show the different aspects of the change in termsof standards perceived. In several occasions the main intention of changing the accountingconcept has been identified with complying as per varied nature of the accounting standards. Thereport has been divided into two sections. The first part of the report has addressed to make therelevant changes associated incorporating the international changes of the accounting standards(i.e. changes being pushed from the IASB) into the Australian accounting standards. It hasfurther shown incorporation of local standards into Australian issues with the Australianaccounting standards. The second part of the report has identified the impact on companyaccounting if the recommended the changes are written into IAS 116/AASB 116. The study hasfurther shown the rationale for adopting the change in the international perspective or nationalaccounting boards such as the AASB (Holder et al., 2013). AASB has been seen to adopt the “International Accounting Standards Board (IASB)”standards on 15 July 2004. In the process of the adoption of the IASB standard AASB has beenseen to act based on the various types of the “Financial Reporting Council strategic direction”.The various types of the adoption process have been further seen to be based on meeting with theagreed norms with AASB Consultative Group which had taken place after March 2003(Moldovan, 2014). The equivalent issue of the IASB standards has been further seen to be basedon the several types of the standards of the adoption which has been seen to be based on the
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