Office of the Australian Accounting Standards Board
Section 1: Agency overview and resources
1.1 Strategic direction
The Office of the Australian Accounting Standards Board (AASB) is an Australian Government agency under the Australian Securities and Investments Commission Act 2001. The AASB transferred governance arrangements from the Commonwealth Authorities and Companies Act 1997 framework to the Financial Management and Accountability Act 1997 framework from 1 July 2008.
The functions of the AASB are to:
- develop a conceptual framework for the purpose of evaluating proposed accounting standards and international standards;
- make accounting standards under section 334 of the Corporations Act 2001 for the purposes of the corporations legislation;
- formulate accounting standards for other purposes;
- participate in and contribute to the development of a single set of accounting standard for world‑wide use; and
- facilitate the Australian economy by reducing the cost of capital, enabling Australian entities to compete effectively overseas, leaving accounting standards that are clearly stated and easily to understand, and to maintain investor confidence in the Australian economy (including its capital markets).
The vision of the AASB is to build on its reputation as a leading national standard setter and be recognised as a global centre of excellence, delivering a truly distinctive contribution to the development of high quality financial reporting standards.
The mission of the AASB is to develop and maintain high quality financial reporting standards for all sectors of the Australian economy and contribute, through leadership and talent, to the development of global financial reporting standards and be recognised as facilitating the inclusion of the Australian community in the activity of global standard setting.
Key priorities during 2008‑09 include:
- issue Australian equivalents to the International Accounting Standards Board (IASB) standards, exposure drafts, invitations to comment and interpretations;
- retain a transaction neutral policy of standard setting;
- participate in ongoing IASB and International Public Sector Accounting Standards Board (IPSASB) research projects including extractive activities for the IASB and conceptual framework and service concessions for the IPSASB;
- issue an exposure draft and standard on superannuation entity accounting; and
- establish a policy on the use of the IPSASB standards in Australia.
1.2 Agency resource statement
Table 1.1 outlines the total resourcing available from all sources. The table summarises how resources will be applied to the AASB.
Table 1.1: Australian Accounting Standards Board resource
statement — additional estimates for 2008‑09 as at Additional Estimates
December 2008
1. The AASB did not receive a separate appropriation in the 2008‑09 Budget.
2. Appropriation was transferred from the Department of the Treasury to the AASB under section 32 of the Financial Management and Accountability Act 1997.
3. Appropriation Bill (No. 3) 2008‑09.
4. Appropriation Bill (No. 4) 2008‑09.
1.3 Agency measures table
Table 1.2: Agency measures since Budget
The AASB does not have any measures since the 2008-09 Budget.
1.4 Additional estimates and variations
Table 1.4 details the additional estimates and variations sought as a result of the AASB transferring governance arrangements from the Commonwealth Authorities and Companies Act 1997 framework to the Financial Management and Accountability Act 1997 framework through Appropriation Bills No. 3 and No. 4.
Table 1.3: Additional estimates and variations to outcomes from measures since 2008‑09 Budget
The AASB does not have any additional estimates or variations as a result of Budget measures.
Table 1.4: Additional estimates and variations to outcomes from other variations
1.5 Breakdown of additional estimates by Appropriation Bill
Table 1.5 details the additional estimates sought for the AASB through Appropriation Bill No. 3. Table 1.6 details the additional estimates sought for the AASB through Appropriation Bill No. 4.
Table 1.5: Appropriation Bill (No. 3) 2008‑09
1. The AASB did not receive a separate appropriation in the 2008‑09 Budget.
2. Appropriation was transferred from the Department of the Treasury to the AASB under section 32 of the Financial Management and Accountability Act 1997.
Table 1.6: Appropriation Bill (No. 4) 2008‑09
1. The AASB did not receive a separate appropriation in the 2008‑09 Budget.
2. Appropriation was transferred from the Department of the Treasury to the AASB under section 32 of the Financial Management and Accountability Act 1997.
Section 2: Outcomes and planned performance
2.1 Outcomes and performance information
The Australian Government requires agencies to measure their intended and actual performance in terms of outcomes. Government outcomes are the results, impacts or consequences of actions by the Government on the Australian community.
The AASB's outcome is described below, specifying the performance indicators and targets used to assess and monitor the performance of the AASB in achieving government outcomes.
2.1.1 Outcome 1: The formulation and making of accounting standards that are used by Australian entities to prepare financial reports and enable users of these reports to make informed decisions
Outcome 1 strategy
The key strategies to achieve Outcome 1 are:
- to make accounting standards under section 334 of the Corporations Act 2001 for the purposes of the financial reporting requirements of the Corporations legislation and providing guidance on the interpretation of those standards (Output 1.1.1);
- formulating accounting standards for purposes of financial reporting by Australian entities that are not subject to the reporting requirements of the Corporations legislation and providing guidance on the interpretation of those standards (Output 1.1.2); and
- to provide Australian participation in, and contribution to, the development of a single set of accounting standards for world‑wide use (Output 1.1.3).
The AASB will continue its role in the development of legally enforceable accounting standards, the development of accounting standards for non corporation's legislation entities and the development of global accounting standards.
Contributions to Outcome 1
| Output Group 1.1 — Australian Accounting Standards Board | |
|---|---|
Components of Output Group 1.1 are:
|
|
| Output 1.1.1 — making accounting standards under section 334 of the Corporations Act 2001 for the purposes of the financial reporting requirements of the Corporations legislation and providing guidance on the interpretation of those standards | |
Output 1.1.1 reflects the AASB's role in the development of legally enforceable accounting standards. This output involves:
|
|
| Key performance indicators | 2008‑09 target |
| Convert each standard and standard amendment developed by the IASB, into Australian Law. | Each converted IASB standard and standard amendment must accord with:
|
| Prepare and publish compiled versions of standards. | Compilations are lodged on the:
|
| Issue exposure drafts. | Obtain stakeholder feedback. Provide feedback to the IASB. |
| Output 1.1.2 — formulating accounting standards for purposes of financial reporting by Australian entities that are not subject to reporting requirements of the Corporations legislation and providing guidance on the interpretation of those standards. | |
Output 1.1.2 — reflects the AASB's role in the development of accounting standards for non corporations legislation entities. This output involves:
|
|
| Key performance indicators | 2008‑09 target |
| Issue Australian accounting standards. | Update the AASB website within three days of finalising any standard. |
| Prepare and publish compiled versions of standards. | Update the AASB website within three days of finalising any compiled standard. |
| Output 1.1.3 — to provide Australian participation in, and contribution to, the development of a single set of accounting standards for world-wide use. | |
Output 1.1.3 — reflects the AASB's role in the development of global accounting standards. This output involves: contributing to the development of International Financial Reporting Standards, International Public Sector Accounting Standards and participation in various international forums. |
|
| Key performance indicators | 2008‑09 target |
| Participate in international standards setting and other research projects. | Respond to all significant IASB and IPSASB exposure drafts; and Undertake research and prepare draft accounting standards on behalf of the IASB and IPSASB. |
| Maintain close working relationships with equivalent organisations in other jurisdictions. | Host and/or attend National Standards Setters meetings; and Participate in the work of the Trans-Tasman Accounting and Auditing Standards Advisory Group. |
| Develop personnel with experience in standard setting. | Provide developmental opportunities for accounting professionals, including recent graduates. |
Section 3: Explanatory tables and budgeted financial statements
3.1 Explanatory tables
Estimates of special account flows
Special accounts provide a means to set aside and record amounts used for specified purposes. Table 3.1.1 shows the expected additions (receipts) and reductions (payments) for each account used by the AASB.
Table 3.1.1: Estimates of special account flows
Estimates of variations to Average Staffing Level
Table 3.1.2 provides the Average Staffing Level for the AASB.
Table 3.1.2: Average Staffing Level
3.2 Budgeted financial statements
Table 3.2.1: Budgeted departmental income statement
(for the period ended 30 June)
1. Estimates for other revenue for 2009-10 and onwards are yet to be confirmed.
Prepared on an Australian Accounting Standards basis.
Table 3.2.2: Budgeted departmental balance sheet
(as at 30 June)
Prepared on an Australian Accounting Standards basis.
Table 3.2.3: Budgeted departmental statement of cash flows
(for the period ended 30 June)
1. Estimates for other cash received for 2009-10 and onwards are yet to be confirmed.
Prepared on an Australian Accounting Standards basis.
Table 3.2.4: Departmental statement of changes in equity — summary of
movement (Budget 2008‑09)
Prepared on an Australian Accounting Standards basis.
Table 3.2.5: Schedule of budgeted income and expenses administered on
behalf of government (for the period ended 30 June)
The AASB does not have any administered funds.
Table 3.2.6: Schedule of budgeted assets and liabilities administered on
behalf of government (as at 30 June)
The AASB does not have any administered funds.
Table 3.2.7: Schedule of budgeted administered cash flows
(for the period ended 30 June)
The AASB does not have any administered funds.
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