7/30/2019 The key roles of the AASB

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The key roles of the AASB

AASB stands for Australian Accounting standards board. Its role in accounting is to create

standards which are the rules of accounting used for particular types of transactions or

events. The purpose of these standards is to allow all companies to effectively assess its

performance, financial position and investment in a similar efficient manner. The accounting

standards are made such that investors are able to easily compare the financial documents

of a business with other businesses. This helps stakeholders such as employees, owners,

creditors, investors and other stakeholders of a business to review financial documents and

assess the financial performance, position and its cash flow. As the accounting standards

mean that similar processes are used in the creation of these financial documents and

hence the stakeholders are able to easily compare the business to other businesses in order

to make and evaluate decisions about the distribution of its limited resources. The effect of

accounting standards on a company is that, if the standards are followed the company

becomes more transparent i.e. easy to compare to other companies. There is a long

process for a new standard to be created. The AASB must identify a technical issue or a flaw

in the current standards, and then they have to research this issue and consult with the

stakeholders in order to register their opinion. These standards are also compared to other

countries before the decision is made to allow a new standard

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The inventories Standard

The main objective of the inventories standard is to describe the treatment of inventories in

accounting. It shows how inventories are recorded and measured in various situations that can

arise in accounting. The main issue occurring in the accounting of inventories that is described in

the standards is, the amount of cost to be recognised as an asset and carried forward until the

related revenues are recognised. The standard helps in determining their cost, shows how they

can become expenses if sold for a lower price than their cost. This is done through the use of

cost formulas which can be used to assign costs for inventories. This standard also shows what

the net realisable value is. The net realisable value is the value that the business expects to

get from the sale of inventories.

The area at which this standard applies is particularly broad. It applies to all inventories except:

Agricultural, forest and mineral products and their producers. These products aremeasured in the net realisable value for the particular time period, and this is compared

with the net realisable value for previous time periods and changes in this can be

recorded as profit and loss

Broker traders- They purchase commodities on behalf of other people in order to sellthem to make a profit. As brokers use fair value minus expenses to measure their

inventories, this standard excludes them from the measurement requirement.

Financial instruments Assets for agricultural activity.

This standard defines inventories as assets that are set for sale in the normal running of the

business, or are the consumable materials that are used in the process of production or in the

services provided by the business. Inventories can be finished goods ready for sale, or

unfinished goods that are still being produced. For a service provider, they can include the cost

of the service which has not been recognised as related revenue.

The cost of purchases of inventories is basically the cost of purchase/production, taxes and all

other costs required to bring inventories to their present location and condition. The costs of

production can include the costs of production as they are the costs of converting the

unfinished product into a finished good ready for sale. The costs of the inventories for a service

provider are the costs of the employees (directly) involved in the provision of the service.

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http://www.aasb.gov.au/admin/file/content102/c3/Policy_Statement_03-11.pdf

Accounting jobs

The full form of CPA stands for Certified Practising Accountant, in order to gain this, the CPA

program needs to be completed, and a combination of work experience and tertiaryeducation is required.

In Australia CA- chartered accountancy requires a tertiary degree with a major in

accounting. At least 26 weeks of working with a practicing CA, and working in a recognised

CA organisation are needed. This is much harder to achieve than a CPA, but is more

prestigious especially in Australia and the UK.

http://www.quinns.com.au/accounting-CPA

http://www.gradconnection.com.au/forums/thread/accounting-industry/the-accounting-profession-explained-and-ca-vs-cpa/?page=last

AUDIT / ASSURANCE MANAGER

http://www.seek.com.au/Job/audit-assurance-manager/in/melbourne-cbd-inner-suburbs/22004291

This is a full time job in the inner suburbs of Melbourne, the salary is negotiable around $100k-

110k.This job provides the opportunity for the employee to undertake audits in various industry

sectors and also perform advisory for a range of clients. The requirement for this job is to be

proficient in the accounting standards as well as having a CA (chartered accountant) qualification.

They will also need good leadership skills and a good track record in order to lead and develop with

their team.

Accounts Receivable Officer

http://www.seek.com.au/Job/accounts-receivable-officer-city-fringe-dynamic-mining-services-

company/in/brisbane-cbd-inner-suburbs/22001085

This job is located in central Brisbane and has a base salary of $55k plus superannuation.

This job requires the employee to report directly to the finance manager. The duties of this

job include account reconciliations, debtor review/analysis, chasing debts and also liaising

with customers. This job requires at least 2 years of experience in a similar role. The use of a

large accounting system is also favoured for this job.

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Senior Tax Advisor

http://www.seek.com.au/Job/senior-tax-advisor-brisbane-s-premier-specialist-tax-

team/in/brisbane-cbd-inner-suburbs/22004696

This job is located in central Brisbane and has a negotiable base salary from $78k-87k. Therole of this job is to work and provide support for large and (ASX) listed clients. Leadership

skills are also needed in order to mentor junior staff. In order to be suited for this role, the

employee must have finished or almost finished their CA or CPA and also must have had

experience or exposure of a tax advisory department, with a minimum of 4 years of

experience with a chartered firm.

Bookkeeper/payroll

http://www.seek.com.au/Job/bookkeeper-payroll/in/perth-eastern-suburbs/21959602

This job is located in Guilford WA and is based on managing the bookkeeping and the payroll

of the ROSE & CROWN hotel. The role of the job includes managing the payroll of 80+ staff,

accounts payable and cash flow projections, Monthly reporting, reconciliations BAS

lodgement and more. This job requires a minimum of 5 years experience as a bookkeeper;

good excel skills and accounting experience/studies.

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