Australian Society of Certified Practising Accountants and The Institute of Chartered Accountants in Australia and undertakes a range of technical and research activities on behalf of the accounting profession as a whole.
A major responsibility of the Foundation is the development of Statements of Accounting Concepts and Accounting Standards. The Public Sector
Accounting Standards Board is one of the boards of the Foundation.
The Australian Accounting Standards Board was established by section
224 of the Australian Securities Commission Act 1989. It has responsibility for the development of accounting standards for application by companies and by other entities in the private sector, and for the development of Statements of Accounting Concepts.
Copies of this Statement are available for purchase from the offices of the
Australian Accounting Research Foundation, 211 Hawthorn Road,
Caulfield, Victoria 3162, Australia.
COPYRIGHWhen issuers prepare financial statements using more than one set of accounting standards, they may find it difficult to explain to investors the accuracy of both sets of financial statements if significantly different operating results, financial positions or cash flow classifications are reported under different standards for the same period. Questions about the credibility of an entity's financial reporting are likely where the differences highlight how one approach masks poor financial performance, lack of profitability, or deteriorating asset quality.
The efficiency of cross-border listings would be increased for issuers if preparation of multiple sets of financial information was not required. However, the efficiency of capital allocation by investors would be reduced without consistent, comparable, relevant and reliable information regarding the financial condition and operating performance of potential investments. Therefore, consistent with our investor protection