New Zealand accounting standards Assignment Example | Topics and Well Written Essays - 1500 words

New Zealand accounting standards - Assignment ExampleInternational Accounting Standards control wag conducts public meetings to encounter transparency in order to produce new or updated financial reporting standards.This performance has been adopted to ensure transparency and to involve the opinion of the public. The procedure ensures constant engagement with the stakeholders like investors, analysts, regulators, business leaders, accounting standard-setters and the pro accountants and auditors at national and international levels (Smart, Bourke, & Awan, 2008). ANSWER 2a External inform Board (XRB) is an independent hood entity developed under section 22 of the Financial Reporting Act 1993 (as amended in 2011). Main responsibilities of XRB are Development and implementation of the overall outline related to financial reporting standards, auditing and assurance standards. Responsible for preparing and issuing of accounting standards. Responsible for preparing and issuing of au diting and assurance standards (XBR, 2011). Other responsibilities of XRB include preparing and issuing of ethical and skipper standards and providing guidelines for conduct. Liaising with organizations on national and international levels on matters that apply functions that are in correspondence with or share similar features with those presented in XRB (NZICA, 2011). ANSWER 2b Initially, New Zealand appoint of Chartered Accountant (NZICA) was responsible for development and implementation of financial reporting standards. ... It has been planned to achieve the same in the current year, i.e.2012. Under the Financial Reporting Act 1993 (FRA), the responsibilities for financial reporting standards setting have been divided between two bodies which are New Zealand Institute of Chartered Accountants (NZICA) and the Accounting Standards Review Board (ASRB). Accounting Standards Review Board (ASRB) is also an independent crown entity. The mechanism has been changed and the new mechani sm is as follows 1. The Financial ReportingStandards Board (FRSB), which is a board of NZICA, volition submit the muster in standardsto the Accounting Standards Review Board (ASRB) for consideration. 2. NZICA is responsible for setting up of auditing and assurance standards for itsmembers. 3. The Professional Standards Board (PSB), which is another boardof NZICA, submits draft standards to NZICAs Board for consideration and approval. 4. Standards approvedfrom NZICA are then obligatory on members. 5. Non-members of NZICA cancarry out statutory audits provided they belong to an overseas professionalaccounting body, providing that the Registrar of Companies has approved theindividual or the professional accounting body to which they belong. 6. Hence, the standards approved by the NZICA Board do not form both binding in formal status in relation tooverseas-qualified auditors who are not members of NZICA (NZICA 2010a). ANSWER 2c On whole, it is expected that External Reporting Board (XRB) will provide better quality of financial reporting standards. It is expected because of the reason that the new financial reporting arrangement has recently been approved by look of Commerce of New Zealand and it has been considered as a significant milestone in the establishment of the new