Australian Accounting Standards Board
Encyclopedia
The Australian Accounting Standards Board (AASB) is an Australia
n Government agency
that develops and maintains financial reporting standards applicable to entities in the private and public sectors of the Australian economy
. Also, the AASB contributes to the development of global financial reporting standards and facilitates the participation of the Australian community in global standard setting. The AASB’s functions and powers are set out in the Australian Securities and Investments Commission Act 2001. The Australian Securities and Investments Commission’s (ASIC’s) role is to enforce and regulate company and financial services laws to protect Australian consumers, investors and creditors.
The AASB uses a conceptual framework, which includes Statements of Accounting Concepts (SAC 1 Definition of the Reporting Entity and SAC 2 Objective of General Purpose Financial Reporting) developed by the former AASB and the Public Sector Accounting Standards Board (PSASB), to evaluate proposed accounting standards.
Under the Australian Corporations Act 2001, many entities are required to apply Australian Accounting Standards when preparing their financial statements. Some public sector entities are required to apply Australian Accounting Standards under either Commonwealth, state or territory legislation, through specific instructions to preparers or reporting frameworks that set out guidelines or regulations.
Members of CPA Australia
, The Institute of Chartered Accountants in Australia and the Institute of Public Accountants have a professional obligation to take all reasonable steps within their power to ensure that entities with which they are involved comply with Australian Accounting Standards when preparing their general purpose financial statements.
(IASB) standards for financial reporting periods beginning on or after 1 January 2005. In July 2004, the AASB adopted a number of standards that apply from 2005, including:
The Australian Accounting Standards that incorporate IASB Standards include:
For reporting periods beginning on or after 1 January 2005, the Australian Accounting Standards that incorporate IASB Standards supersede their previous Australian counterparts, if any.
The other AASB Standards supporting the Australian Accounting Standards that incorporate IASB Standards comprise:
Current Australian Accounting Standards for which there are no corresponding IASB Standards remain in force beyond 1 January 2005, even though they may be reissued in the future to update them in this new regime. These include:
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...
n Government agency
Government agency
A government or state agency is a permanent or semi-permanent organization in the machinery of government that is responsible for the oversight and administration of specific functions, such as an intelligence agency. There is a notable variety of agency types...
that develops and maintains financial reporting standards applicable to entities in the private and public sectors of the Australian economy
Economy of Australia
The economy of Australia is a developed, modern market economy with a GDP of approximately US$1.23 trillion. In 2011, it was the 13th largest national economy by nominal GDP and the 17th largest measured by PPP adjusted GDP, representing about 1.7% of the World economy. Australia was also ranked...
. Also, the AASB contributes to the development of global financial reporting standards and facilitates the participation of the Australian community in global standard setting. The AASB’s functions and powers are set out in the Australian Securities and Investments Commission Act 2001. The Australian Securities and Investments Commission’s (ASIC’s) role is to enforce and regulate company and financial services laws to protect Australian consumers, investors and creditors.
The AASB uses a conceptual framework, which includes Statements of Accounting Concepts (SAC 1 Definition of the Reporting Entity and SAC 2 Objective of General Purpose Financial Reporting) developed by the former AASB and the Public Sector Accounting Standards Board (PSASB), to evaluate proposed accounting standards.
Standard application
The original series of Australian Accounting Standards (AASs), which was applicable to entities not regulated under the Corporations Law, was issued by the former AASB and the PSASB of the Australian Accounting Research Foundation (AARF) on behalf of the professional accounting bodies, prior to 2000. The original series of AASB Standards (AASBs), which was applicable to entities regulated under the Corporations Law, was also issued by the former AASB, prior to 2000. Most AASs were superseded by AASBs for reporting periods beginning on or after 1 January 2005. As at 1 July 2009, only AAS 25 Financial Reporting by Superannuation Plans was still operative. Except AAS 25, since 1991, all standards issued by the AASB have been labelled AASB Accounting Standards and are applicable to all types of entities.Under the Australian Corporations Act 2001, many entities are required to apply Australian Accounting Standards when preparing their financial statements. Some public sector entities are required to apply Australian Accounting Standards under either Commonwealth, state or territory legislation, through specific instructions to preparers or reporting frameworks that set out guidelines or regulations.
Members of CPA Australia
CPA Australia
CPA Australia is one of three professional accounting bodies in Australia, the others being the Institute of Public Accountants and the Institute of Chartered Accountants of Australia....
, The Institute of Chartered Accountants in Australia and the Institute of Public Accountants have a professional obligation to take all reasonable steps within their power to ensure that entities with which they are involved comply with Australian Accounting Standards when preparing their general purpose financial statements.
Adopted standards
Since 2002, the AASB implemented the broad strategic direction from the Australian Financial Reporting Council (FRC) to adopt International Accounting Standards BoardInternational Accounting Standards Board
The International Accounting Standards Board is an independent, privately funded accounting standard-setter based in London, England.The IASB was founded on April 1, 2001 as the successor to the International Accounting Standards Committee...
(IASB) standards for financial reporting periods beginning on or after 1 January 2005. In July 2004, the AASB adopted a number of standards that apply from 2005, including:
- Australian Accounting Standards that incorporate IASB Standards
- Other AASB Standards supporting the Australian Accounting Standards that incorporate IASB Standards
- Other AASB Standards that apply to certain types of entities
The Australian Accounting Standards that incorporate IASB Standards include:
- AASB 1 First-time Adoption of Australian Accounting Standards, AASB 2 Share-based Payment, etc, which incorporate IFRS 1 First-time Adoption of International Financial Reporting Standards, IFRS 2 Share-based Payment, etc, being the Standards issued by the IASB since 2001
- AASB 101 Presentation of Financial Statements, AASB 102 Inventories, etc, which incorporate IAS 1 Presentation of Financial Statements, IAS 2 Inventories, etc, being the Standards issued by the International Accounting Standards Committee (IASC), which was the predecessor to the IASB
For reporting periods beginning on or after 1 January 2005, the Australian Accounting Standards that incorporate IASB Standards supersede their previous Australian counterparts, if any.
The other AASB Standards supporting the Australian Accounting Standards that incorporate IASB Standards comprise:
- AASB 1031 Materiality
- AASB 1048 Interpretation and Application of Standards
Current Australian Accounting Standards for which there are no corresponding IASB Standards remain in force beyond 1 January 2005, even though they may be reissued in the future to update them in this new regime. These include:
- AAS 25 Financial Reporting by Superannuation Plans
- AASB 1004 Contributions, AASB 1039 Concise Financial Reports, AASB 1049 Whole of Government and General Government Sector Financial Reporting, AASB 1050 Administered Items, AASB 1051 Land Under Roads and AASB 1052 Disaggregated Disclosures