Question

Critically explain how the Australian Accounting Standards Board take part in the global accounting standard setting process (i.e. in setting IFRS). Why is the IFRS set by the International Accounting Standards Board (IASB) not compulsory for the member countries of IASB? (700 words needed)

Answer 1

The vision of the AASB is to build on its reputation as a leading national standard setter and be recognised as a global centre of excellence, delivering a truly distinctive contribution to the development of high quality financial reporting standards.

The mission of the AASB is to develop and maintain high quality financial reporting standards for all sectors of the Australian economy and contribute, through leadership and talent, to the development of global financial reporting standards and be recognised as facilitating the inclusion of the Australian community in the activity of global standard setting.

Australian Accounting Standards Board take part in the global accounting standard setting process :

• accounting standard and standard amendments to be developed by the IASB are in accordance with Australian legislative drafting protocols and Federal Register of Legislative Instruments requirements;

• regular consultation and liaison with a broad range of Australian constituents;

• accounting standards or compilations are lodged on the Federal Register of Legislative Instruments and are published on the AASB website within three days of finalisation;

• responses are made to all significant IASB and IPSASB exposure drafts;

• host and/or attendance at National Standards-Setters Group and Asian-Oceanian Standard-Setters Group meetings and participate in the work of the Trans-Tasman Accounting and Auditing Standards Advisory Group; and developmental opportunities for accounting professionals, including recent graduates and secondments, are provided