Effects of AASB on the IASB-Free-Samples-Myassignmenthelp.com

Questions: 1.You are to report on the Processes used to make Changes to Australian Accounting Standards. 2.You will find the Current Call for Comment on this ED at the AASB Website. Answers: Introduction This assignment comprises of two sections. The first part of the assignment has been framed in order to gain knowledge about the Australian Accounting Standards. This paper has even looked to gain knower about how the AASB implements transformations in their standards in regards to the International Accounting Standards Board (IASB). The AASB has been assessing the several local issues of Australia from various time periods and has tried to implement several transformations so that authentic measures can be undertaken in order to implement these concerns and issues within the standard (Pawsey Crase 2013). The next part of the paper consists of recording for the call for the comment with respect to the exposure draft. This part therefore would describe the fact that whether the standards in relation to national accounting would in compliance with the international accounting standard and would even make changes in their own standards if any requirement gets highlighted 1.This section of the assignment tries to resolve the transformations that AASB has tried to introduce within the International Accounting Standards. The standards and polices of AASB has given out the roles, powers and functions and the methods used by AASB in order to perform their task in an effective manner (Ao 2015). The following figure reveals the AASB standard setting process. The method of setting standard by AASB involves the recognition of the technical matters and then introduces these matters to the agenda. The next examination is in regards to the research and the consideration of the issue. The conclusion of this step leads to the consultation with the stakeholders because after the process of consultation, the changes can be given out to the international bodies (AASB 2015). This process leads to other pronouncement or the issuance of the standard. It is seen that a technical matter can be identified by the IFRS Interpretation Committee or can even be handled by the IASB. The Australian Accounting Standard Board has implemented the transformations within the IASB and this process is in accordance to the strategic path that has been derived from the Financial Reporting Council (Ferguson et al., 2014). Therefore, the problems with respect to the IASB working program and the IFRIC work program that is even included in the functioning program of AASB. It is even seen that the level of involvement by Australian Accounting Standard Boards is different with respect to various matters and these issues can be substantive and non-substantive. It has been observed that there are various technical matters and these may have been identified by the IPSASB. The AASB supervises the working performance very closely of APSASB and then works in accordance to the selected subjects that are on the basis on their significance to the financial reporting of the public sector of Australia (AASB 2015). The AASB members can identify the technical matters that require to be considered. The issues and the concerns that have been identified in accordance to the profit making entities are basically transported to the IASB and the IFRIC for consideration and identification. The matters that have an effect on the non-profit individuals in the public and private sectors can be addressed locally and can be given out to the IPSASB (Pacter 2014). The Australian stakeholders can advise and comment to the AASB that are regarding the problems that in their idea needs to be considered by the international makers of standard and the AASB. There are even problems and issues that can ask in accordance to the idea of enhancing the authenticity and the reliability of the financial statements and the information and lowering the cost that are in accordance to the financial reports and their reporting. During the adoption or the implementation of the IASB standards, the general approach of Australian Accounting Standard Board has been to introduce the content and the words of the IASB standards. The statements are the ones that are altered when there is a need to accommodate the Australian legislative atmosphere. This can be understood in the case that during the need to implement an Australian statement or paragraph of any application within the Corporations Act 2001(https://probonoaustralia.com.a 2017). It has been observed that these changes do not have any effect on the elements of the demands and the needs. The main focus of IASB has been on the profit based entities. There has been an observation that AASB is liable for framing the standards of accounting for each and every type of entities. The additional texts that are identified is included in the standards of AASB in order to manage and supervise the restricted cases where there is a requirement to have various demands fo r the not for profit individuals. The new requirements do not have an impact on the requirement in accordance to the profit entities (Patrcio 2014). There are conditions during which the not for profit entities that complies with the national accounting standard of Australia and with the International Standards and does not have the capability of complying concurrently with the IASB standards and as the additional demands for entities that are in nature non-profit are volatile in accordance to the demands of IASB. AASB even has the function of recognising the local problems that are in association to Australia so that they can bring in those transformations in their standards of accounting and assisting the companies to work efficiently. It has been observed that AASB even undertakes the suggestions and recommendations of the stakeholders and looks to gain knowledge about the problems and concerns and looks to add these concerns in the agenda (Budding et al., 2014). The accumulation of the problems can be taken once the technical matters have been identified. The discovery of these issues can be helpful in developing a project proposal by AASB. The scheme of the project consists of the assessment of the feasible advantages of framing the project, costs and the expenses of not undertaking it, the resources that are obtainable and the feasible timing of it (Suhaimi 2015). It is seen that the next action of AASB is to analyse the proposal of the project and then decide on a decision in accordance to the area that whether the project and the concerns are commendable and whether these should be added within the agenda. If AASB takes a decision of not including the topic to the agenda, the AASB may take a decision in order to report officially the decision as the decision of the Board Agenda, which is even regarded as the items that have not been added in the agenda or the agenda statement rejection. The decisions that have been agreed upon in the meeting are recorded in the minutes and it is seen that whether an official agenda of the decision has been delivered. There are specific issues that may be considered with the assistance of the New Zealand Accounting Standard Boards and where these problems have been of any significance so that comparable requirements can be framed (Bian 2016). After the end of the research, AASB establishes a related document that is accessible for discussion in public and the suggestions of the stakeholders with the assistance of the documents that have been explained below: Exposure draft An exposure drafts typically a draft of a constructed standard and the other statement and the modification of the draft in accordance to the standard. Such drafts are likely to include more precise proposals in accordance to the invitations towards the discussion papers, comments and papers for consultation (Pham 2015). Invitation to the comments Invitations for the comments distinctively try to discover the feedback on the broadened proposals. The invitations to the comments can have a discussion paper and even comprise of a consultation paper. Interpretation of the draft Interpretation of the draft consists of the draft of a proposed standard that has to be interpreted. Discussion Paper These are the paper that specifically outlines the broader degree of the accounting policies on a topic that has been specified. The consultation papers, discussion paper and the comparable documents can be given out by IASB, IPSASB, AASB and other letters of standard (Hamilton-Jessop 2014). The AASB may even look to issue the international statements in Australia for suggestions and can even include an Australian preface that may have been added in order to describe the content. The final outcome for considering the AASB in accordance to an issue can be a statement issuance like the conceptual framework, a standard and an understanding. However, on the other hand, the AASB may even look to address an issue by giving their viewpoint of the problem in the meetings of the minutes and even in legitimate Board Agenda Decision. The documents that are appropriate for the profitable entities would be dependable with the IFRS that has been addressed by the IFRS. This has been constructed in order to ensure that the common intention of the financial documents framed by the profitable entities in accordance to the standards of AASB and will even be in line to IFRS (Khokan Bepari et al., 2014). It has been seen that AASB manages the implementation of the standards of accounting and the clarifications that are seen in Australia. This may result to the improvements of the domestic or the national standards and even to the resubmissions given to the IASB in order to recommend the alterations in accordance to the international standards. There are several councils and commissions who are given the role of supervising the changes of the compliances in accordance to the standards of accounting (Al-Rassas 2015). The AASB obtains feedback from the councils and the commissions that is aids in assessing the transformations in these standards are crucial. Thus, it can be stated that along with introducing the transformations from the IASB, AASB even needs to introduce these changes by evaluating the domestic issues so that the AASB can in accordance to the international standards and even with the domestic problems. 2.This part of the assignment comprises of a report that has to be constructed with the help of the Exposure Draft 116. The concerned draft is associated to the equipment, plant and property of Australia. The main aim of the concerned draft has been to suggest the various accounting treatment for properties, plants and equipment so that the users of the financial report can differentiate that data of individual investment within their concerned equipment, plant and properties and the alterations in such investments (Federal Register of Legislation. 2017). The principle problems in the accounting of equipment, property and plants have been the recognition of the assets, analysis of the carrying costs; depreciation charges and the impairment loss are needed to be discovered with this regard. There have been several amendments in AASB 116 and it is seen that there have been introduction of additional paragraphs in the draft. With respect to this statement, paragraph 56 describes the future economic profits that are incarnated in an asset are expended an individual specifically by utilising it. Additionally the other characteristics like the technical and commercial wear and tear and undesirability when the assets are not utilised, which can lead to the decrease of the economic benefits that may be obtained from an asset (Zori 2015). It is seen that paragraph 62 A has implemented the process of depreciation that is based on the profit that is computed by an action that are inclusive of the exploitation of the asset, which is not appropriate. The profit that is procreated by any activities that are inclusive of the utilisation of the asset distinctively duplicates the reasons other than consumption of the economic advantages of any asset. It is even seen that paragraph 81 I are inclusive of the amendments of AASB and the explanation of the processes that are acceptable for the depreciation and the amortisation that was given in the year 2014 and later improved paragraph 56 and then included the paragraph 62 A. It is described that every article should seek for the improvements effectively during the span of annual reports that initiates on or after 1st January 2016. The implantations that have been done before are allowed. If anybody makes applications for these improvements for any earlier period and the standards would disclose the data (Andriansyah 2015). The rectifications that are implemented have an effect on the organizational accounting due to the alterations in AASB 116. It is seen that as this standard is associated to equipment, property and plants, there would be an effect on the primary costs. The products that are associated to property, equipment and plant can be gained for secured environmental reasons. The bodies had an effect on the subsequent costs as the standard will not recognise the carrying amounts in the daily servicing of the products but is recognised during the loss or profit that has been computed. The costs are taken as maintenance and repairs of the items of the equipment, property and plants. There may be specific segments of the property that may require replacements at every interval and thus may have an effect on the organizational accounting (Marques 2017). The effect of the rectifications has a crucial effect on company accounting as it can be observed that this has led to the framing of an efficient cost framework and a model of revaluation. This has led to crucial alterations in the models and even in the process of accounting. It is seen that the implementation of these changes has a crucial effect on the countries that exposed more to the manufacturing operations. The manufacturing companies are linked with the equipment, property and plants and thus alterations in the costing frameworks and the revaluation models, which leads to the alterations in the operational and accounting process (AASB 2015). The modifications enhances the manufacturing approach of the countries that are related with the manufacturing activities as the new framework leads to the decrease of the risks and conclusion of the process of accounting an authentic manner. The process of one-size-fits all is an efficient process because with the implementation of this process, all the standards will become a bit similar and thus the process of accounting of each and every country would be alike thus abolishing the probabilities of any disparities and the gaps among the standards (Nguyen 2016). It is seen that the implementation of one-size-fits all would become enhanced efficiency and fairness among the standards of accounting as it would assist the companies that are globalised in order to frame their financial reports in an effective manner thus removing the probabilities of any variations among the financial reports of the firm performing in two countries. It is even seen that there are various domestic concerns in regards to each country and thus it significant for the standards of accounting of every country to introduce these problems to the standard so that the domestic issues of accounting can be terminated. Thus, the domestic accounting standards need to have that substitute that during the development of a need, the board can introduce certain changes and improve the standards accordingly (Jesus Jorge 2016). Thus, it is said that amendments in AASB 116 can be a significant factor for the enhancement of the organizational accounting policies, which can enhance the activities of the manufacturing companies. Conclusion The conclusion of the paper explains that in part A of the assignment tries to gain knowledge regarding AASB and they can bring in transformations in the IASB. The assignment has even looked to recognise how AASB tries to analyse the domestic problems of Australia and how the board can bring in changes within AASB. Part B of the assignment comprises of exposure draft 116 and the amendments with regards to the call for draft. The draft has played a crucial role for rectifications in the AASB, which has an effect on company accounting of several firms. 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