1. a) Does the AASB have legal power to enforce accounting standards within Australia? If not, then...
Question:
1. a) Does the AASB have legal power to enforce accounting standards within Australia? If not, then who does?
b) What is differential reporting? Which entities in Australia do they relate to?
2. The fundamental qualitative characteristics that financial information must possess to be useful to the primary users of general purpose financial reports identified in the Conceptual Framework are 'relevance' and 'faithful representation'.
a) Provide one example where information is relevant but not faithfully represented.
b) Provide one example where information is not relevant but is faithfully represented.
c) Provide one example where information is relevant and faithfully represented.
3. If the directors of a large listed Australian company consider that the application of a particular accounting standard is not appropriate to their circumstances, what should they do? Do they have to comply with accounting standards?
Expert Answer:
a The AASB Australian Accounting Standards Board is a standardsetting body in Australia and is responsible for developing and issuing accounting standards However the AASB does not have legal power to ... View the full answer
