Groups

Question 1

FRC Nature + 4 Importances

Answer 1

(Financial Reporting Council)

Nature

• A federal government body established and overseen by the Federal Treasurer to oversee the process of establishing accounting standards

Importance

• Oversees activities of the AASB
• Monitors process for adopting AASB’s
• Acts as an advisory to AASB
• Promotes international best practice in standard setting
• Monitors + reviews funding for AASB

Question 2

ASIC Nature + 3 Importances

Answer 2

(Australian Securities and Investment Commission)

Nature

• A federal government body which administers and enforces Corporation Law

Importance

• Administers the Corporations Act and other laws effectively with minimal procedural requirements
• Interprets Accounting Standards and issues interpretations in documents known as regulatory guides
• Enforces AASB accounting standards

Question 3

IASB Nature + 2 Importances

Answer 3

(International Accounting Standards Board)

Nature

• An independent standard setting board which develops and approves International Financial Reporting Standards (IFRS) on a global basis

Importance

• Produces International Financial Reporting Standards (IFRS)
• Co-operates with national accounting standard-setters to achieve similarity in accounting standards worldwide

Question 4

AASB Nature + 3 Importances

Answer 4

(Australian Accounting Standards Board)

Nature

• A body that establishes and develops accounting standards in Australia in alignment with ASIC Act 2001 and IASB

Importance

• Develop and issue accounting standard that have the force of the law - to
• Develop conceptual frameworks to evaluate proposed accounting standards - research of the effects of the proposed accounting standards on firms and businesses
• Participate and contribute to the development of a single set of accounting standards for worldwide use

Question 5

ASX Nature + 3 Importances

Answer 5

Australian Securities Exchange

Nature

• ASX is a public company which provides a marketplace for the buying and selling of shares in public companies and other financial services

Importance

• Ensures companies listed follow listing rules which require them to produce documents such as half-yearly reports, preliminary final statements and any additional details to the annual report
• Ensure company behaviour is in the best interest of security holders
• Monitors activities of publicly listed companies on the exchange

Question 6

Lobby Groups Nature, 2 Examples, 2 Importances

Answer 6

Nature

• Groups or representatives from particular organizations, which attempt to influence the content of accounting standards from AASB in ways that favours their industry or views
  
  • Sustainability Groups
  • Business/Law Councils of Australia

Importance

• Raise issues that need attention
• Ensure standards can be practically applied

Question 7

What is an annual report

Answer 7

A comprehensive report on a company’s activities throughout the preceding year to inform shareholders and other relevant entities about the company’s activities and financial performance

Question 8

3 Purposes of an Annual Report

Answer 8

• To fulfil requirements of the Corporations Act and ASX
• To fulfil right of an ordinary shareholder to receive an annual report
• To highlight achievements and promote a company