Regulating Groups

FRC - Financial Reporting Council

• Ensures accounting standards are relevant and effective

• Manages AASB budget

• Provides direction to AASB

• Appoints AASB board members

ASIC - Australian Securities and Investment Commission

• Enforces accounting standards set by AASB

• Maintains, facilitates and promotes confidence in the financial system

• Ensures markets are fair and transparent in operations

• Ensure company directors carry out their duties honestly and diligently

• Licence and monitor financial services

• ADMINISTERS law - must prepare statements in accordance with accounting standards

• ENFORCES law - takes action against non complying entities

investors are more confident to make decisions - more stability in markets and reduced risks

IASB - International Accounting Standards Board

• Develop international accounting standards

• Works with AASB so that Australia is in alignment

AASB - Australian Accounting standards Board

• Government agency

• Develop, issue and maintain Australian Accounting Standards

• Develop conceptual framework

• Participates in developing international accounting standards

ASX - Australian Stock Exchange

 

• Public company that provides a marketplace to buy and sell shares

• Listing companies have to comply with listing rules (eg. issue half yearly reports)

Lobby Groups

• interested parties lobby against standard setters

• Influence AASB, to impact standards relevant to their industry

• Eg. accounting organisations, councils, insurance providers