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

New Zealand story standards - Assignment ExampleInter depicted object chronicle Standards Board conducts public meetings to ensure transparency in fix up to produce late or updated financial account standards.This procedure has been adopted to ensure transparency and to consume the opinion of the public. The procedure ensures constant engagement with the stakeholders like investors, analysts, regulators, business leaders, accounting standard-setters and the professional accountants and auditors at national and planetary levels (Smart, Bourke, & Awan, 2008). resolving power 2a External Reporting Board (XRB) is an independent crown entity developed under segmentation 22 of the Financial Reporting Act 1993 (as amended in 2011). Main responsibilities of XRB are Development and execution of the overall strategy related to financial reporting standards, auditing and assurance standards. prudent for preparing and issuing of accounting standards. Responsible for preparing and issu ing of auditing and assurance standards (XBR, 2011). Other responsibilities of XRB include preparing and issuing of ethical and professional 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 Institute of Chartered Accountant (NZICA) was responsible for development and implementation of financial reporting standards. ... It has been plotted 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 t he new mechanism is as follows 1. The Financial ReportingStandards Board (FRSB), which is a board of NZICA,will submit the draught 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 other boardof NZICA, submits draft standards to NZICAs Board for consideration and approval. 4. Standards sanctionfrom 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 okay theindividual or the professional accounting body to which they belong. 6. Hence, the standards approved by the NZICA Board do non form any 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 Boa rd (XRB) will provide better caliber of financial reporting standards. It is expected because of the reason that the new financial reporting arrangement has recently been approved by Minister of Commerce of New Zealand and it has been considered as a significant milestone in the presidency of the new