Question

Do your own research and critically explain how the Australian Accounting Standards Board
take part in the global accounting standard setting process (i.e. in setting IFRS). Why is the
IFRS set by the International Accounting Standards Board (IASB) not compulsory for the
member countries of IASB?

Answer 1

P. nol Accolding to dala :- International financial Reporting Standards, Commonly called IFRS, are accounting Standards issued by the IFRS foundation and the International Accounting Standards Board (IASB). * They Constitute a Standardised way of describing the company's financial performance and position so that company financial etatements al understandable and comparable across international boundaries . They particularly relevant for Companies with shares of Securities listed on public al stock exchange. own * Every major country has their accounting Standards, however to bring Standaardisation and comparability, efforts has been made by organisations like IASB to

2 P.No.2 bring in the accounting Star hands acceptable to majority of the countries. * in this respect only, AASB which looks after Standard Setting in Australia also takes active part in Standard setting by identifying technical assues which need charged by taking inputs from Australian Organizations and individuals into account when preparing its Submissions to international organisations. AASB makes formal submissions on document issued for comment by the IASB and the IPSASB, to contribute to the setting of high- quality international accounting Standards. * It is not compulsary as many member Countries have their own Standards and adoption of Convergence to IFRS for them is not fearble so it is taking place in phases pleais, Vote positively... Set