Acct 2011 | Australia Accounting Standard
Added on 2020-03-04
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Literature review: Individualassignment
Executive Summary The research report is a look into the activities of the AASB as far as amendments are concernedto the existing AASB and IFRS standards are concerned in Australia and how the AASB boardundertakes the standard setting process to fulfill the needs of the stakeholders etc. one of themost important aspect of AASB standard setting process is how the board involves thestakeholders in the process and asks for their comment letters and include them in a direct roundof discussion is quite interesting. Also, it is up to the board to examine the comments anddiscussions put forward by the stakeholders before the same can be included in the amendedprovisions. In the other portion of the report the changes made in the AASB 116 is examinedhow the same would affect the industry participants is examined. There is also a discussionregarding the appropriateness of the changes made by IASB and whether some of theamendments can be undertaken by AASB itself to suit industry specific needs in Australia.
Introduction AASB standards are set in motion as soon as they are approved with a given deadline for itsadoption by all registered entities in Australia. However, the accounting standards issued andeven the conceptual framework on which the framework of standards are based are never goingto be static and rigid documents. The provisions of accounting standards do keep on changing asper the prevalent economic scenarios and market conditions. In this aspect, the role of the AASBBoard is quite important as the AASB Board is deemed as the primary standard setting board inAustralia[ CITATION Hen15 \l 1033 ]. Part A: literature Review The AASB Board is a 11 member board including the chairman of the board. The chairman ofthe AASB board is appointed by the Ministry of Corporate law and the members of the AASBboard are appointed by the FRC or the Financial reporting council. AASB is entrusted with theopportunity of developing a general and widely applicable standard which is understandable in atransparent and comparable manner so that general purpose financial statements can be presentedin an unbiased manner for the consumption of the users in Australia. The changes in the standard can be made as a result of the technical issues being identified by theIASB or the same can be identified by the IFRIC. Australian regulators have adopted the IASBor the IFRS framework since 2005 and thus any technical issues identified by the IASB wouldhave a significant change in the AASB standards as well and would require modification as well.Thus, any issue which is reported by the IASB board or the IFRIC would be required to beaddressed by the AASB board too. However, the degree of involvement in the change programmight be substantive or non-substantive on the part of AASB board. A technical issue might beconsidered when identified by IPSASB. AASB board always monitors the working program ofthe IPSASB and would undertake changes pertaining to financial reporting in the public-sectororganizations in Australia[ CITATION Ber11 \l 1033 ].
Issues of technical nature cn also be identified by AASB itself related to IASB consideration toIFRIC consideration and once the issues are identified the AASB would go on to issue relevantagenda related to the technical issue considered.The agenda means a project proposal would be prepared by the AASB board including thebenefits that would accrue of the project is undertaken by AASB and the resources which isestimated to be consumed on consideration of the relevant consideration. The project proposalwould also most of the time try to include a note as to how the non-consideration would affectthe relevant parties. The project proposal would then be considered by the AASB board as to whether the same shallbe worthwhile to be acted upon and if the same shall be placed inside the work program orAgenda of the board. If the board decides not to include the proposal in the agenda then theboard would proceed to issue a rejection statement citing relevant decision making criteria. Theminutes of the board meeting in which either the proposal is accepted to rejected would berecorded appropriately[ CITATION Pic15 \l 1033 ]. The next step taken by the board is to consider the research proposal and do a methodicalresearch on the same. AASB board would proceed to have a detailed discussion on the materialswhich are presented by the staff members of the AASB. The scope of the issue and any possiblealternative approaches would be included in the agenda papers and discussed. The AASB wouldinclude possible information statements from the IASB board or even from the IFRIC and maybe form the NZASB etc[ CITATION Cri15 \l 1033 ].Sometimes the issues under consideration of the Agenda might be jointly considered with theNew Zealand board when the issues under consideration might be beneficial to both countries. The next process in the change process is the consulting process with all the stakeholdersinvolved. Once the AASB board considers the agenda in detail and then the documents adoptedafter considerable and detailed discussion would beamed available to the stakeholders concerned.The documents which are made available to the stakeholders are:a)Exposure drafts b)Invitations to Comment and
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