Research Background AASB | Assignment

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Proposed Research Title: Accounting regulation in Australia
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Research Background
AASB (Australian Accounting Standards Board), which is an independent agency of government
sets the accounting regulation or accounting standards in Australia. Broadly accounting standards
are comparable with the requirement of IFRS through AASB made some modifications to some
of the standards and issued the additional guidance and interpretations for accomodating specific
economic and legislative environment of Australia or for meeting particular reporting
requirements for the entities like non-profit entities (Iasplus.com, 2019).
In accordance with AASB the Australian acounting standards is applicable to (i) each
organisation and they shall prepare the financial reports in compliance with Part 2M.3 of
Corporation Actn (ii) GPFS of the each reporting entity (iii) financial reports of each general
government sector and (iv) financial statements held as GPFS. As per Para 5, unless it is
specifued otherwise, Australian Accounting Standrads are appliacble to each entity which is
required preparing the financial reports as per Part 2M.3 of Corporation Act (Aasb.gov.au,
2019).
Australia was asked to comply with the international accounting stadards since 1st January 2005.
Owing to this the accounting standard setting capacity of Australia and its position along with
capacity as the centre of accounting excellence has been weakened fundamentally. As per Wayne
Lonergan the inevitable result is that the quality of finnacial reports will be of inferior quality that
will sow the seeds of more serious corporate colapse in future (Finsia.com, 2019).
Some of the issues associated with financial accounting those are controversial have been the
subject of debate over the time by the users, preparers, auditors and the financial statement
regulators. In most of the cases, these issues are resolved, however in some of the cases these
issues are not solved. In majority of the cases the policies related to financial reporting and
accounting policies in Australia are regulated by listing rules of ASX (Australian Securities
exchange), accounting standards and various other pronouncements released by AASB
(Australian accountung Standard Board) and government legislation. In the private as well as
public sector most important legislation that specifies the requirement of financial reporting is the
Corporations Act, 2001 that replaced Corporation Act 1989. As per the requirement of
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