As we all know, some countries have their own accounting standards-setting process, because of the globalization, the accounting standards need to be developed in these countries, and also those countries which don’t have the standards need to adopt the standards straightly from IASC and later the IASB.
I will introduce the process how IASB produces or updates the financial reporting standards in the following part:
Setting the agenda-in this first step, IASB considered that which information should be used and the reliability of the provided information; then search whether the existing standards match or not; the possibility to change it and the quality of developed standards. Then allocated the resources.
Project planning—if the IASB decided to increasing the items, they need to consider the new item is an individual one or jointly with other standards. The IASB may raise the working group in this stage.
Development and publication of an IFRS—the development of the standard is carried out during the IASB meetings, so the IASB can collect the comments around and see whether sufficiently understood or not.
Procedures after IFRS is issued— After the new standard issued, the IASB will consider the changes in financial reporting environment and comments from the Councils.
Development and publication—the IASB normally published the new item’s new topic and explain the use of it, might be list some examples.
Development and publication of an exposure draft—based on the comments which the council made, the IASB instructs the staff to draft the exposure draft.
In addition, the IASB is made up of 14 individuals, 12 of them whom are full time, and two part times. Each IASB member has one vote on technical and other matters. The publication of a standard, exposure draft or final SIC interpretation requires approval by 8 out of 14 members.
2. (a) The key responsibilities are: developing the financial reporting as a whole and present audit standards; preparing and issuing the accounting standards; preparing and issuing auditing standards; and liaising with national and international organizations that exercise functions that correspond with, or are similar to, those conferred on the XRB.
(b) After 1 July 2011,the ARSB has been replaced by XRB, the standard setting in New Zealand has been restructured. The new role of NZICA said it set to develop a new set of condensed reporting guidelines for medium and small company, also changes some disclosure rules, and put more focus on pre-profit and public profit. Under Company Act, all companies to prepare annual financial reports. And now, the large companies are no longer need to prepare the general purpose financial reports. Some highlights still remain the same, like financial statements are on average 42 pages; accounting policies need take up 14% and so on.
(c) As we all know, the new XRB has specific pages where accounting standards, and auditing and assurance standards. However XRB will not be publishing hard copies of standards, that means the right of publish it belongs to NAICA. I think the quality of financial reporting standards has to be improved because the new board and the old board dealing with the same issue but more in details, so basically we can take care all aspects.
Part B – Legal, ethical, societal and professional requirements: 1. (a) The Code of Ethics is based on a number of Fundamental Principles that express the basic tenets of ethical and professional behavior and conduct. Observance of these Fundamental Principles is central to the public interest. All members must abide by these…