Introduction To Australian Accounting Standards Board

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.

In 1973, the Financial Accounting Standards Board (FASB) was created and their mission is “to establish and improve standards of financial accounting and reporting for the guidance and education of the public, including issuers, auditors, and users of financial information.” (FASB.org, 2009a). The FASB is a private, not-for-profit organization whose primary purpose is to develop generally accepted accounting principles (GAAP) within the United States. The Securities and Exchange Commission (SEC) designated the FASB as the organization responsible for setting accounting standards for public companies in the U.S. Therefore, the FASB plays a vital and important role in protecting the financial well being and the overall stability of our

The purpose of creating FASB is to establish standards of financial accounting that control the establishment of financial reports by nongovernmental organizations. This instance is identified as the number one authority by the SEC and the American Institute of Certified Public.FASB Accounting Standards Codification serves as a reference guide of authoritative standards for accounting and reporting, to be applied by nongovernmental organizations. Some examples are; ASC 830-230-55-1 that can identify as Statement of Cash Flows for Manufacturing Organization with Foreign Operations, ASC 926-330-35-1 can be justified as Products Held for Sale, ASC 954-440-25-2 identified as Continuing Care Retirement Community, ASC 505-20-50–1 means Equity, Stock Dividends and Stock Split and Disclosure, ASC 710-10-05-6 describe as Employees Compensations..

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

Fast forward to 1970, where the APB’s main contribution “Basic Concepts and Accounting Principles Underlying Financial Statement of Business Enterprises was highly critized for achieving too little too late. Ultimately, resulting in the AICPA suggesting that the standard setting role be turned over to an autonomous body known as the Financial Accounting Standards Board

Even before the financial crisis began in 2008, the Financial Accounts Standards Board (FASB) and the International Accounts Standards Board (IASB) began working on a joint project to overhaul their accounting standards for financial instruments. The financial crisis showed how the overstatement of assets was caused by a delayed recognition of credit losses associated with loans and other financial instruments. This led to the IASB and FASB forming the Financial Crisis Advisory Group (FCAG) in October 2008 with the objective to deal with reporting issues that arose from the crisis and to examine how improvements in financial reporting could help improve investor confidence. In particular, both the regulators felt the need for a forward looking

The application of AASB 108 helps in identifying the accounting policy or policies that will apply to a particular event when a certain Australian

IAASB is a team of the International Federation of Accountants. It was created to increase uniformity of auditing practices and related services throughout the world by creating standards on auditing and reporting practices. Their role is to develop standards of consistency in accounting quality. They do not override a member nation's auditing standards however; members in countries that have standards in place should try to remove variations by likening their standards to those of the IAASB.

Financial reports are used by banks, investors, or governmental agencies to determine the financial stability of an organization. Importantly, financial reports are used to set stock prices and determine the solvency of an organization. Therefore, FASB was created to ensure organizations report accurate financial information. Additionally, financial reports are created using the same format as outlined by GAAP by all organizations.

The FASB has the mission of create and improve the accounting standards and the financial reports by the nongovernmental organizations, offering useful information that allows investors and other users to make decisions. The implementation and improvement of the standards is made taking into consideration the opinion of all the parties interested and it is supervised by the Financial Accounting Foundation’s Board of Trustees. This process open to the public participation warranty the transparency into the standards-setting process. Therefore, the FASB issue a variety of reports requesting feedbacks on its standards setting activities. (FASB, Standard-setting process, n.d.)

In recent years there has been significant changes made in our understanding of the relationship between the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB). At present both the IASB and FASB are working on a joint venture referred to as the convergence project in hopes of eliminating a variety of differences between International Financial Reporting Standards and U.S. GAAP. Another area covered in this paper besides a brief history of the relationship between the IASB and FASB will be how the MSA program will prepare students for the accounting profession. The intent of this paper will be to address both issues first; explaining my understanding of the

The very first concern relates to the subject of recognizing and measurement requirements compared to the full IFRSs. Moreover, there is criticism about the hierarchies for choosing accounting policies, since its consequence is the disparity of accounting policy choices in different entities (Australian Accounting Standard Board 2010). The other concern is about the training and education costs for both tertiary and profession level. AASB also requires the IFRS for SMEs to include more topics and treatment options in order to meet its stand-alone objective. Several comments about the suitability of IFRS for SMEs for Tier 2 were noted by AASB. For example, favorable accounting policies for Australian companies have been replaced; subsidiaries are forced to adapt to new policies since parents comply with full IFRSs; changing in the requirements of recognition and measurement do not produce any sort of future economies for SMEs in Australia. Therefore, AASB will choose to continue monitor and assess the possibility of adopting IFRS for SMEs in the future, and adopts RDR as an alternative since there are overwhelmingly positive support for it over the IFRS for

Accounting Standards are public pronouncement set by accounting standards board, which lists the entire accounting requirements for different types of transactions and events. The accounting system in the Australian is applying the Australian Accounting Standards which are set by the Australian Accounting Standards Board (AASB); the standards can be applied to whether private, public and non-for profit organizations and these standards have the force of law for Corporations Law entities under section 296 of the Corporations Act 200. As an accounting student, comprehend the importance of Accounting Standards is very necessary, these standards are the Bible of accounting studies. Accounting Standards helps accounting students to learn accounting

The ASAF is made up of representatives of both national and regional standard setters, and it serves as a check to the IASB to "ensure that a broad range of national and regional input on major technical issues... are discussed and considered." They also provide a background to "facilitate effective technical discussions on standard-setting issues" which may involve the IASB both directly and indirectly. The Financial Accounting Foundation (FAF), which parents FASB, helped carve a path for FASB to join the ASAF despite its refusal to adopt IFRS as its sole accounting standard, and they continue to use their influence to ensure that FASB keeps its presence. During the quarterly ASAF meetings, FASB keeps the other members updated on U.S. GAAP developments as well as IFRS usage in our country (through foreign private

A variety of parties are interested in and affected by the development of accounting standards. Various users of accounting information have discovered that the best way to impact the formulation of accounting standards is to attempt to influence the standard setters. The CAP, APB, and FASB have all come