Standards Setting

Specific accounting and auditing standard setting functions for which the FRC is responsible include:

  • appointing the members of the AASB and AUASB (other than the Chairmen);
  • approving and monitoring the AASB’s and AUASB’s: priorities; business plans; budgets; and staffing arrangements (including level, structure and composition of staffing);
  • determining the AASB’s and AUASB’s broad strategic directions;
  • giving the AASB and AUASB directions, advice or feedback on matters of general policy and on the AASB’s and AUASB’s procedures;
  • monitoring the development of international accounting and auditing standards and the accounting and auditing standards that apply in major international financial centres;
  • furthering the development of a single set of accounting and auditing standards for world-wide use with appropriate regard to international developments;
  • promoting the continued adoption of international best practice accounting and auditing standards in the Australian accounting and auditing standard setting processes if doing so would be in the best interests of both the private and public sectors in the Australian economy;
  • monitoring:
    • the operation of accounting and auditing standards to assess their continued relevance and their effectiveness in achieving their objectives in respect of both the private and public sectors of the Australian economy;
    • the effectiveness of the consultative arrangements used by the AASB and AUASB; and
    • seeking contributions towards the costs of the Australian accounting and auditing standard setting processes;
  • monitoring and periodically reviewing the level of funding, and the funding arrangements, for the AASB and AUASB.