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
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Once the proposal has been produced, the AASB will determine whether the project is satisfactory, where it will be added to the workload of AASB if it has been approved. Once the project has been approved and added to the agenda, the staff at the AASB writes papers to address the scope of the issue, alternative solutions and the timing of the standard (output). Once the research has been completed, the AASB will make contact with stakeholders such as members of the public to make comment or discuss the issue and resolution. This contact is made by way of an Exposure Draft, Invitation to Comment, Draft Interpretations or Discussion Papers. Furthermore, the AASB may conduct round-table discussions, focus groups, project advisory panels or interpretation advisory panels. The final step of AASB is to issue the standard or pronouncement where international organisations and Australian stakeholders can make comment and review the standard, putting forward any additional issues that may arise as a result of the implementation of the new standard.
While this systematic approach may seem simple, there are some inconsistencies within the development of a new standard. Problems arise at all stages of development. These problems include but are not limited to; further issues developed as a result of the new standard and the solution may be beneficial to one party, yet harmful to another. There is an old adage that says