Australia proposes a new approach to interpretations
26 Nov 2005
The Australian Accounting Standards Board has invited comments on a proposed new model for developing interpretations of Australian Accounting Standards, most of which are equivalent to IFRSs.
Under the proposals:
- The AASB will assume direct responsibility for developing Interpretations and the Urgent Issues Group (UIG) will be disbanded.
- An Interpretations Agenda Committee would be formed with the purpose of recommending how an issue proposal is dealt with, for example:
- whether an interpretation is warranted;
- whether it is a purely domestic issue or whether it should be referred to the International Financial Reporting Interpretations Committee (IFRIC) of the IASB.
- An advisory panel chaired by the AASB Chairman or another AASB member will be formed on each issue where guidance may be necessary.