Research and Compare the Role of Aasb Essay

3373 Words May 3rd, 2012 14 Pages
Research and compare the role of AASB both before and after the changes referred to the above.
This report analyses and sets out the role of the Australian Accounting Standards Board and also considers the main aims and purpose of AASB and hence drawing a conclusion as to whether AASB is a significant player or a toothless tiger.
The Australian Accounting Standards Board is an Australian Government Agency and according to Deegan (2010), AASB is defined as the “body charged with developing conceptual framework for accounting practices, making and formulating accounting standards and participating in and contributing to the development of a single set of accounting standards for the world wide use”. Therefore AASB plays a very important
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According to Deegan 2010 (page 13) the functions of AASB are listed at section S.227 of ASIC act and include: * Firstly, develop a conceptual framework, not having a force of an accounting standard, for the purpose of evaluating accounting standards and international standards; * Secondly, make accounting standards under S.334 of the corporations act for the purpose of national scheme laws; * Thirdly, formulate accounting standards for other purposes and * Fourthly, participate in and contribute to the development of single set of accounting standards for worldwide use.
Another main function or role during the setting up of IFRS was whether there was a need to keep an Australian Accounting Standards authority when Australia was to adopt the international standards approved by the International Accounting Standards Board (IASB). AASB will continue to have an important role in setting future standards in Australia as well as having an important impact on the development of IFRS’s as stated by Carol & Dixon (2003). Ultimately, IASB would be responsible for setting the conceptual framework and for the resulting standard developments in Australia. After the early struggle,” the AASB had largely accepted the change to its own powers in relation to standard setting. It was no longer a free standard setter. It had lost its power to set its own standards” (Godfreys ,J. & Chalmers K.2007). AASB had very little ability

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