Australian Financial Accounting Standards Board

Question: Discuss about the Australian Financial Accounting Standards Board. Answer: Introduction: Regulatory environment for financial reporting AASB has identified certain specific financial instruments in the public sector that includes the special drawing rights, currency in circulation and monetary gold. The International Financial Reporting standards has off late declared the consultation paper that has sought feedback regarding the viewpoints of individuals on accounting for the three different public sector instruments in the public sector (Aasb.gov.au., 2016) Changes and development AASB has also introduced different international public accounting guidelines that can be utilized by different public sector business units in Australia. The particular guidelines can help in the process of evaluation of the financial instruments. In addition to this, the AASB has also declared different comments and suggestions that might perhaps help in the process of improvement of the effective system of accounting to uphold different financial instruments of the public sector (Aasb.gov.au., 2016). Changes in the standards International: Australia and Korea together help in the enhancement of the consistency of global accounting AASB along with the Korean Accounting Board is assuming sufficient initiative to support and identify different challenges in the IFRS standards. Again, the process of identification of the challenges by the board members of the AASB can help in reduction of the gaps as well as unethical measures that are carried out by different firms. However, the Korean Accounting Standard Board essentially declared the utilization of different accounting treatments that might perhaps assist in carrying out comparison between the financial declarations of the Korea and the Australia (Aasb.gov.au., 2016). The unified system thereby can help in the process of reduction of the gaps that in turn can diminish the process of tax collection of corporations. Again, the chair of the IASB committee declared that the research file on the KASB and AASB primarily assists in process of decoding the entire system of the IFRS in diverse languages. The research also sheds light on significance of the simple langua ge in the process of setting the standards (Aasb.gov.au., 2016). However, the present research has global applications and not just for the IFRS in Korea as well as Australia. The process also involves different recommendations for the International Accounting Standards Board (IASB) that refers to the reduction of the total number of diverse terms of likelihood and development of guidance for clarification of meaning. Therefore, the accounting system can also be used in upholding the corporations in preparing appropriate financial declarations. Modifications in AASB 2 as on 21/07/2016 The present modifications to the AASB primarily declare the alterations that might perhaps assist in diverse share based payments (Australian Accounting Standards Board (AASB) - Home., 2016). Again, the issue of the AASB 2016-5 declares diverse types of measures that the corporation might possibly use for the share-based compensation. However, the amendments to the AASB 2 also mentioned the different vesting and non-vesting conditions for the shares that can be settled in the form of cash (Aasb.gov.au., 2016). The classification of the share based payments for the new settlement, alteration from cash settled to equity settled. The amendments on the AASB 2 will be applicable from the period as on 1st January 2018. References Australian Accounting Standards Board (AASB) - Home. (2016). Aasb.gov.au. Retrieved 24 August 2016, from https://www.aasb.gov.au/ Aasb.gov.au. (2016).Aasb.gov.au. Retrieved 23 August 2016, from https://www.aasb.gov.au/News/Amendments-to-AASB-2?newsID=193505 Aasb.gov.au.. (2016). Aasb.gov.au. Retrieved 24 August 2016, from https://www.aasb.gov.au/News/Australia-and-Korea-take-lead-role-in-improving-consistency-of-global-accounting?newsID=193507 Aasb.gov.au. (2016). Aasb.gov.au. Retrieved 24 August 2016, from https://www.aasb.gov.au/News/Public-sector-specific-financial-instruments?newsID=193506