Australian Accounting Regulations

The issue of adoption of international financial reporting standards (IFRSS) in Australia has been controversial issue since the first time Australian Financial Reporting council (FRC) announced the policy in 2002. Many believe that IFRSS adoption will lead to great advantages such as enhance financial report comparability, improve quality of financial reporting, attract more foreign investor, and other significant advantages. However, some also believe that the adoption merely result in disadvantages and cost for Australian business, accounting profession and even Australian government.

It is an important function of any organisation to regulate the external financial reporting. The legislation that governs the external financial reporting is Financial reporting act 2013 (FRA) and The companies act 1993 (Deegan & Samkin, 2013). The Regulation is required to safeguard the interests of those using the financial information but do not directly participate in the business. These users may be both primary and secondary. The information provided by the financial statements are used for making economic decisions by its users (NZASB, 2016a). The regulation of external financial reporting does not only help the external users

Upon reviewing your post, the insights I gain are the importance of companies following the rules and regulations enforced by The Securities and Exchange commission (SEC). In addition to the (SEC) financial accounting are also monitor by the Financial Accounting Standards Board (FASB) regulate the financial statements issued to shareholders. Zimmerman, J. L. (2014). I also realized the importance of companies making certain that the financial information posted, is accurate. By doing so, they help others such as stockholders and investors to make decisions that will be most beneficial to them.

The article is written to help readers gain a solid understanding the roles of corporate governance, both inside and outside the company. Its goal is simply to impart information, not make claims or arguments on its own. I will be judging it mainly on the sources gathered, numerous examples and explanations given and the overall effectiveness it possesses in effectively communicating its ideas.

The purpose of this report is to research the accounting and reporting standards of the Financial Accounting Standards Board (FASB) and report the impact FASB may have on our company. The following research explains the history and purpose of FASB, the accountability requirements on public corporations, the effectiveness of FASB in setting standards in order to improve financial reporting in the public

Broadly skilled finance professional with over 3 years experience in both accounting and taxation. Thorough understanding of Australian tax compliance and laws for individuals and companies. Excellent financial reporting skills, building meaningful financial information and reports that can be presented to financial and non-financial members. Benefits from Chartered and Commercial environments, whilst quickly demonstrating the versatility to adapt to both. Pro-active communicator, confidently developing relationships both internally and externally, and liaising with all levels of staff.

3.1 How quality is measured in relation to IFRS. The adoption of IFRS and why the change?................................................................................

The regulations the commonwealth enacts to control the conduct of our banks are policed by ASIC and APRA. The ASIC (Australian Securities and Investments Commission) Act 2001 (Cth) contains within division 2, the unconscionable conduct as well as consumer protection provisions in relation to financial services providers that are no longer in the Trade Practices Act. APRA is a body established in 1998 by commonwealth legislation.The role of the Australian Prudential Regulation Authority (APRA) is to oversee the banks, and act as a regulator within the finance industry. (Wentworth, 2007)

Accounting Standard AASB 116: Property Plant and Equipment (Australian Accounting Standards Board) states, expenditure is entered into the comprehensive income statement only when the given conditions are met.

Regulation is defined as a set of rules that is designed to control and govern conduct by authority (Deegan 2009, p.59). On the basis of this definition, Deegan (2009, p.59) has defined regulations relating to financial accounting as rules that are developed by independent authoritative body to govern the preparation of financial statements which are accounting standards. Since decades ago, there have been arguments for and against the existence of accounting regulations. With a stance of pro-regulation, this essay is going to examine the reasons that financial accounting and reporting should be regulated and the merits of accounting regulations.

Regulation is a topic that has been debated for many years and will continue to be debated for years to come. In the business and finance sector, there are many regulators including but not limited to the Australian Securities and Investment Commission (ASIC), Financial Reporting Council (FRC), Australian Prudential Regulation Authority (APRA) and the Australian Accounting Standards Board (AASB). While these are only a few regulatory bodies in the industry, they all have their own set of regulations to enforce. ASIC, for example, regulate the Corporations Act 2001 along with the Australian Accounting Standards. While ASIC ensure that organisations adhere to the regulations laid out before them, the AASB create and develop those

Accounting regulations form the rules and principles that govern the structure, content, audit disclosure of financial information. These regulations stop accounts from practicing fraudulent activity and impose penalties and fines, in order to protect investors, creditors etc.

Corporate governance refers to the mechanisms, processes, and relations by which corporations are controlled and directed. (Bhasin, 2013) It involves balancing the interests of the company and providing the framework of the company; including action plans, and internal controls. Internal controls are defined by the board of directors, and top management. They are necessary to help prevent fraudulent activity within a company. By implementing stronger internal controls, Satyam could have possibly reduced the impact that this scandal had on the firm.

Both speakers have made credible arguments towards the contradictory nature of the International Accounting and Financial Reporting Standards. Accounting standards are a method of regulating the reporting of everyday transactions within the profession, alongside laws, regulations and codes of professional bodies (Guest Lecturer, 2014). Regulatory regimes are necessary as they aim to achieve a uniform objective that published accounts in the market are to show a true and fair view of the entity they purport to represent. However, the qualitative characteristic “true and fair” is very much subjective to the professional publishing the accounts. As it is open to interpretation, certain entities can use this vulnerability to their advantage

At the same time, the regulators should be as transparent as possible and fully accountable. The accountability and transparency of the regulator will increase the credibility of the regulator and in-turn benefit the regulated entity. Types of Financial Regulation Financial regulation in a country can be done either by a single body called a single regulator or multiple bodies co-existing and working together or in a hierarchy of entities known as multiple regulators. A regulator whether single or multiple does not determine the economic standing of a country or its financial strength. Many developed countries of the world follow either the system of single regulation or multiple regulations. Often in times of economic crisis or financial boom in the country’s economy the government of the nation will review its regulatory system and choose to expand or close down some of its regulatory bodies.