Question

To what standards does the Chart of Accounts need to be prepared and what role has the AASB(Australian Accounting Standards Board) in this? Discuss in 150 to 180 words.(Please type up your answer) (Please consider this is Australian Accounting environment)

Answer 1

The chart of accounts (COA) is the hub through which financial data is posted to the general ledger by any number of groups across an organisation

The Chart includes a column referring to current AASB Accounting Standards. Despite the fact that Australia has moved to "new" AASB Accounting Standards (i.e. IFRS Equivalents), there are only minor differences between AASB standards and IFRS equivalent standards.

The AASB has a transaction neutrality policy, which means similar transactions and events should be accounted for in a similar manner by all types of entities, whether in the for-profit sector, the not-for-profit private sector, or the public sector – unless there is a sound reason to be different in particular circumstances. The AASB considers the specific needs of not-for-profit entities in the private and public sectors when preparing new and revised IFRSs for adoption in Australia.