Research and Compare the Role of Aasb Essay
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 …show more content…
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