Analysis of Australian Accounting Standards Board (AASB) Regulations

This report provides an in-depth analysis of the Australian Accounting Standards Board (AASB), the primary regulatory body responsible for setting accounting and auditing standards in Australia. It highlights the AASB's role in shaping financial reporting practices and ensuring compliance with established standards. The analysis focuses on two key aspects of the AASB's work: the Table of Standards, which lists the accounting standards that companies must adhere to, and the Table of Interpretations, which addresses urgent financial reporting issues and provides guidance for auditors. The report emphasizes the importance of auditors staying updated with the latest changes in standards and interpretations to ensure accurate financial statement preparation and compliance. The conclusion underscores the AASB's significance in promoting uniformity in accounting practices, aligning with the broader global trend towards International Financial Reporting Standards (IFRS). It also highlights the potential legal consequences for auditors who fail to comply with these standards, reinforcing the critical role of regulations and policies in financial reporting and auditing. The report references key resources and provides insights into the AASB's functions and impact on the financial landscape.

Australian Accounting Standards Board
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Table of Contents
Introduction.....................................................................................................................................2
Analysis............................................................................................................................................3
Table of Standards:...........................................................................................................................3
Table of Interpretations –.................................................................................................................4
Conclusion........................................................................................................................................5
References........................................................................................................................................5
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Introduction
The Australian Regulators that have been selected for this assignment includes the Australian
Accounting and Standard Board that is responsible for setting accounting and auditing standards in
Australia. It has been operations since last 50 years and the auditors are needed to follow these
standards when they are preparing their audit reports and their financial statements.
The reason for which AASB has been selected as the most important regulator in Australia’s financial
market as they are the principal body that frames the important policies and standards based on
which the financial statements are prepared and presented, and important accounting statement
are presented to the public. It is important that the auditors follow these standards and check
whether the financial statements are prepared accordingly. The auditor also need to see that the
auditing standards that are issued by the AASB are followed in preparation of the audit report by the
auditors.
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Analysis
Based on the analysis of the website and the information that is presented hereunder it can be seen
that two types of information that can be found on the website of the company includes:
Table of Standards:
This table includes in numerical order the list of the accounting standards that the companies need
to follow. It contains the latest version of all the accounting standards and all the recent updates are
highlighted in that (Abdullah & Said, 2017). The latest version can be found using the search
pronouncements by reporting period to find which version applies to the relevant accounting period.
There are also present some extra materials that are attached to each standard in case there are any
supporting information available. It affects the auditors as they need to aware about all the recent
changes that has happened in any standard and check whether the same has been applied to the
company and its financials for that reporting period (YUAN, 2018).
Table of Interpretations –
The interpretations state the necessary requirements in relation to the urgent financial reporting
issues. The AASB has the direct responsibility of developing the Australian equivalents of the IFRIC
interpretations and thus has replaced the Urgent Issues Group (UIG). These are present in the AASB
1048 Interpretations of standards and thus making it more convenient for the auditors to follow. It is also
synced with the policies of the Corporations Act 2001. In case of interpretations other legislative bodies can
also be given authority like the Commonwealth, State and Territory Treasuries or their equivalent. It is in
the hands of the AASB to approve or reject any kind of new interpretations and check whether they are
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fulfilling the purpose for which they have been prepared. These are very useful for the auditors as they can
always consult these interpretations and based on that they can decide the overall changes that they want
to make. It helps them in solving the issues that they face in case of complex accounting requirements and
accordingly same can be taken care of in future similar cases. Thus, it helps the auditors in auditing the
statements effectively and preparing them as per the required standards (Norberg, 2018).
Conclusion
Based on the overall analysis AASB is the primary body that frames all the important accounting and
auditing standards that companies need to follow. In case there are any changes then same is
updated and the auditors are expected to follow the same. In case they don’t then they fall under
legal compliance. Thus, we see on larger grounds also it is very important that companies follow
these standards and these regulations so that they can prepare their financial statements and
compare them accordingly with their competitors. In the recent era companies are trying that there
should be uniformity in the way accounts are prepared and handled in different countries and
nations and this has also led to the development of the IFRS that is highly acceptable in many
countries (Wendt, 2018).
AASB as a financial regulator and financial authority is trying its best to make all such changes and
accommodate the same in their websites through daily updates, discussion, papers etc. In case the
auditors fail on certain grounds in following these standards then he shall also be held liable for that
and thus we see how important regulations and policies are when it comes to preparation of the
books of account and the audit report.
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The website can be accessed at:
https://www.aasb.gov.au/
References
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Abdullah, W., & Said, R. (2017). Religious, Educational Background and Corporate Crime Tolerance
by Accounting Professionals. State-of-the-Art Theories and Empirical Evidence, 3(1), 129-149.
Norberg, P. (2018). Bankers Bashing Back: Amoral CSR Justifications. Journal of Business Ethics,
147(2), 401-418.
Wendt, K. (2018). Positive Impact Investing: A Sustainable Bridge between Strategy, Innovation,
Change and Learning (first ed.). Switzerland: Springer.
YUAN, T. (2018). The Prospect for RMB Becoming One of the Two Center Currencies of the Dual-
Center Global Financial System. The Dual-Center Global Financial System(1), 83-91.
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