Accounting standards issues by the Australian Accounting Standards Board (AASB) are consistent with those issued by the:Group of answer choicesFinancial Reporting Council (FRC).Australian Taxation Office.Urgent Issues Group.International Accounting Standards Board.
Question
Accounting standards issues by the Australian Accounting Standards Board (AASB) are consistent with those issued by the:Group of answer choicesFinancial Reporting Council (FRC).Australian Taxation Office.Urgent Issues Group.International Accounting Standards Board.
Solution
The Australian Accounting Standards Board (AASB) issues accounting standards that are consistent with those issued by the International Accounting Standards Board (IASB).
Here's a step-by-step explanation:
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The AASB is Australia's national standard-setter responsible for developing, issuing and maintaining Australian accounting standards and related pronouncements.
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The AASB also participates in and influences the development of international financial reporting standards that are issued by the IASB.
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The IASB is an independent, private-sector body that develops and approves International Financial Reporting Standards (IFRSs). The IASB operates under the oversight of the IFRS Foundation.
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The AASB's policy is to adopt the Standards and Interpretations issued by the IASB Board, unless there are exceptional circumstances, as Australian Accounting Standards.
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Therefore, the accounting standards issued by the AASB are consistent with those issued by the IASB.
The Financial Reporting Council (FRC) is the oversight body for the AASB, but it does not issue accounting standards. The Australian Taxation Office is responsible for administering the tax law, not issuing accounting standards. The Urgent Issues Group was a part of the AASB that dealt with emerging issues in accounting, but it has been replaced by the AASB's Interpretations Agenda Consultation Committee.
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