1.

What are the key sources of regulation in Australia / or any other country for a
listed company?
The key sources of regulation for a listed company in Australia are:
 The Corporations Act, which is administered by the Australian Securities and Investments
Commission
 Australian Accounting Standards and the Conceptual Framework, issued by the Australian
Accounting Standards Board
 Australian Securities Exchange Listing Rules.

2. Describe the standard-setting process of the IASB /AASB.

Accounting standards are developed through a consultation process to ensure that the
accounting information prepared and presented in the financial statements following these
standards is of high quality and valuable to all users of financial statements. If an accounting
issue is added to the AASB’s agenda, AASB will start by researching the issue, then will
consider solutions and consult with stakeholders. The AASB may then issue exposure drafts,
invitations to comment, draft interpretations and discussion papers. For standards intended
for profit-seeking entities, the exposure drafts issued by the AASB typically incorporate
exposure drafts issued by the IASB, along with Australian-specific matters for comment as
applicable. The consultation process may involve focus groups and roundtable discussions
with stakeholders and responses to exposure drafts. The AASB may also draw on project
advisory panels and interpretation advisory panels.

3. Explain the potential benefits and problems that can result from the adoption of
IFRSs in Australia.
- Promotes transparency and accountability
- Efficient allocation of capital
- Attract foreign investments
- Theres ifrs for sme which only covers 80% of ifrs
-
The adoption of Australian Accounting Standards that are equivalent of IFRSs is essentially
an example of implementing a global set of accounting standards. It reflects the view that
doing so is, on the whole, in the best interests of the Australian economy. These benefits may
manifest in reduced cost of capital and reduced reporting costs for Australian companies that
seek finance in global capital markets. It also make listing on the stock exchange in Australia
more attractive to multinational corporations because Australian investors’ will have greater
understanding of financial statements prepared in accordance with IFRSs. The problem that
can result from the adoption of IFRSs in Australia is the ‘one size fits all’ approach used in
the implementation of IFRSs in Australia. IFRSs were initially drafted to be used solely by
large for-profit entities. In Australia, however, they have been applied across the board to all
entities, including small and medium-sized entities, not-for-profit and government entities.
This resulted in unnecessary costs to the small and medium-sized entities, especially in
regards to satisfying the disclosure requirements in IFRSs. The AASB has recently
recognised this issue and has implemented a differential system — reduced disclosure regime
— whereby certain entities may not have to abide by the full disclosure requirements of
Australian equivalents to IFRSs
Supplementary Research Questions
Case study 1.1

The AASB or NZASB

Visit the AASB website ([Link]) or NZASB website ([Link]) and

answer the following:
1. Who is the Chair of the organisation?
Chair of AASB – Keith Kendall
Chair of NZASB – Carolyn Cordery

2. Who are the members?

AASB – Prof. Carolyn Cordery, James Grant, Professor Dean Hanlon, David Holland,
Adrian King, Toby Langley, Liza Maimone, Mathew Nelson, Sean Osborn, Paul Rogers,
Caroline Spencer, Professor Stephen Taylor, Alison White

NZASB – Michael Bradbury (Deputy Chair), Lara Truman, Francis Caetano, Richard Perry,
Denise Hodgkins, Keith Kendall, Richard Smyth, Jason Stinchcombe, Warwick White.

3. Which accounting standards have been issued in the past year?

AASB Title Notes Issue Operative
No. Date Date

1 First-time Adoption of Australian Accounting Compiled Dec 1 Jan

Standards Extra 2022 2023

2 Share-based Payment Compiled Dec 1 Jan

Extra 2021 2022

3 Business Combinations Compiled Jun 1 Jan

Extra 2020 2022

4 Insurance Contracts Compiled Sep 1 Jan

Extra 2020 2021

5 Non-current Assets Held for Sale and Discontinued Compiled Dec 1 Jan
Operations Extra 2021 2022
4. What are the standard setting policies and processes?
5. What current projects (if any) is the AASB or NZASB working on in cooperation
with
the IASB?

Australian Financial Reporting Framework

Title Last Updated

Not-for-Profit Financial Reporting Framework 07 Nov 2022

For-Profit Phase 2: Adopt RCF and Remove SPFS for Certain For-Profit Private Sector Entities 19 Dec 2022

Public Sector Financial Reporting Framework 07 Oct 2020

Tier 2 GPFS Framework Revision 12 Apr 2022

Other Domestic Projects

Title Last Updated

 Sustainability Reporting 06 Feb 2023

Climate-related Financial Disclosure 06 Feb 2023

Income of Not-for-Profit Entities 19 Dec 2022

Insurance Activities in the Public Sector 17 Aug 2022

Fair Value Measurement for Not-for-Profit Entities 13 Oct 2022

COVID-19 03 Jul 2020

Reporting Service Performance Information 20 Dec 2022

Service Concession Arrangements: Grantors 20 Feb 2019

Tax Transparency Code 13 Feb 2019

IASB Projects (AASB Discussions)

Title Last Updated

Extractive Activities 17 Feb 2022

Business Combinations under Common Control 02 Sep 2021

Financial Instruments with Characteristics of Equity 07 Feb 2019

Accounting Policy Changes 01 May 2019

Rate Regulated Activities 13 Feb 2019

Goodwill and Impairment 15 Dec 2020

Primary Financial Statements 05 Oct 2020

 
The AASB is also closely monitoring and contributing to the IASB’s projects. To
access the latest information, please refer to project summaries on the IASB’s
website.

Case study 1.2

The IASB

Visit the website of the International Accounting Standards Board ([Link]).

Report on:

1. the resources that are provided by the IASB for the accounting profession
Resources for the accounting profession
Publications
  IFRS Accounting Standards Navigator—for IFRS Standards, IFRIC Interpretations,
the IFRS Taxonomy, other authoritative guidance, illustrative examples, bases for
conclusions and official translations
 IFRS Shop—to purchase the Red, Green and Blue books—three different
compilations of IFRS Accounting Standards

Stay up-to-date

 Alerts - including the IASB Update and the IFRIC Update, published after each Board
and IFRS Interpretations Committee meeting.
 Work plan - the Boards' current work plan

Events and conferences

 Upcoming events— an overview of upcoming events

 Speakers—if you would like to request a speaker from the IFRS Foundation/Boards
for one of your own events, please follow our speaker request process

Consultations

 Open consultations—an overview of all consultations

Other materials

 Supporting materials—materials developed to support the consistent application of

new IFRS Standards, including articles, webinars etc
 The IFRS for SMEs Accounting Standard
 Snapshots—these summaries prepared for each new Standard are useful, for example,
when briefing audit committees and CEOs.
 A Pocket Guide to IFRS Standards—this useful summary for briefing members of
Boards of Directors or Managing Committees

2. the funding of the IASB

The IASB, as a private not-for profit organization, cannot require companies or governments
to fund its operations. Instead, the IASB relies on voluntary contributions from about 200
organizations to support its standard-setting activities. In 2011, approximately 79% of the
IASB’s funding was sourced from contributions (£20.6 million), while most of its remaining
income came from sales of publications.

3. the goals and the mission statement of the IASB.

“Our mission is to develop IFRS that brings transparency, accountability and efficiency to
financial markets around the world. Our work serves the public interest by fostering trust,
growth and long-term financial stability within the global economy.”

4. a current project being undertaken by the IASB.

In May 2022, the IASB decided to add a maintenance project to its work plan to make
narrow-scope amendments to IFRS 9 Financial Instruments and IFRS 7 Financial
Instruments: Disclosures in response to the post-implementation review of the classification
and measurement requirements. In October 2022, the IASB tentatively decided to make
further amendments relating to the derecognition of financial liabilities through electronic
cash transfers and the disclosure requirements for equity investments to which an entity
applies the presentation option to present fair value changes in other comprehensive income.
Case study 1.3

ASIC

Visit the website of the Australian Securities and Investments Commission

([Link]). Report on:

1. what ASIC is and its role

ASIC is Australia’s corporate, markets and financial services regulator. ASIC is an

independent Australian Government body. We are set up under and administer
the Australian Securities and Investments Commission Act 2001  (ASIC Act), and we
carry out most of our work under the Corporations Act.

Our role under the ASIC Act is to:

 maintain, facilitate and improve the performance of the financial system and
entities in it
 promote confident and informed participation by investors and consumers in
the financial system
 administer the law effectively and with minimal procedural requirements
 receive, process and store, efficiently and quickly, information we receive
 make information about companies and other bodies available to the public as
soon as practicable
 take whatever action we can, and which is necessary, to enforce and give
effect to the law.

2. the types of investigations and enforcement performed by ASIC

In deciding which enforcement action to pursue, we consider the circumstances of
each case. This may result in us pursuing one or more types of enforcement action
or pursuing another outcome. What we decide will depend on the facts of each
matter. We will consider the extent of the harm caused, or likely to be caused, by
the conduct and the evidence that is available to establish what took place.

3. the policy statements and practice notes issued by ASIC.

The Australian Securities and Investments Commission (ASIC) today issued final
versions of the two policy statements and two practice notes issued as ‘proof’
versions on 1 July 2004. The policies provide guidance on several aspects of the new
requirements of the Corporate Law Economic Reform Program (Audit Reform and
Corporate Disclosure) Act 2004  (CLERP 9).

The final CLERP 9 policies issued today are:

 Policy Statement 180: Auditor registration [PS 180]

 Practice Note 34: Auditors’ obligations: reporting to ASIC [PN 34]
 Practice Note 66: Transaction-specific disclosure  [PN 66], and
 Policy Statement 173: Disclosure for the on-sale of securities and other
financial products [PS 173].