REGULATION OF ACCOUNTING IN AUSTRALIA

Regulation of Accounting in Australia



Regulation of Accounting in Australia

Introduction

The study is related to the accounting in Australia which particularly focuses on the regulation of accounting. The purpose of this study is to evaluate the regulation of accounting in Australia is respect of following which are important to study as it regulation of accounting is one of the key determinant of business or economic activities;

Accounting in Australia is over regulated.

Accounting in Australia needs to be more tightly regulated.

Accounting in Australia is appropriately regulated.

Discussion

To understand which of the above mentioned statements about the regulation of accounting in Australia is correct, it is necessary to have knowledge of Australian accounting regulation. The Australian rules for accounting have three origins that include the following;

Government legislation: laws and codes developed by the Corporate Affairs Commissions (GAGs) States, the National Companies and Securities Commission (NCSC) and now the Autralian Securities Commission (ASC) in their place;

The accounting standards: the Australian Society of Certified Practicing Accountants (ASCPA) and the Institute of Chartered Accountants in Australia (ICAA) to the principles and accounting standards, professional codes and disciplinary procedures;

The Australian Stock Exchange (ASX) listed companies.

In addition, before the nationalization of the legislation, the Companies Act required each state;

Holding regular books of account,

The presentation of an income statement and balance sheet at a general meeting of shareholders and filing legal documents,

That the accounts presented fairly the results and circumstances of society,

Publication (usually in the form of notes) information prescribed by law and the establishment of an audit report.

Sound Regulation System of Accounting in Australia

The regulation of accounting system in Australia can be well arranged as it can be listed as follows:



The Law of Company

The company law is considered as the supreme law in accounting area, and it only makes some regulations of principle. As for the Accounting principles listed in the law of company, they are legally binding and must be strictly observed. Legislation that currently determines the accounting and financial reporting of capital companies is constituted by the union of four sets of texts that include;

the Corporations Act 1989,

the Corporations Law,

the Australian Securities Commission Act 1989,

Applications Acts of each State and Territory.

Australian Law Corporation has developed slowly in each state following the British model. The changes generally occurred as a result of failures of large companies.

Despite significant changes to the ...