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

New Zealand accounting standards - Assignment Example International Accounting Standards Board conducts public meetings to ensure transparency in order to produce new or updated financial reporting standards.This procedure 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 professional accountants and auditors at national and international levels (Smart, Bourke, & Awan, 2008). ANSWER 2a: External Reporting Board (XRB) is an independent crown 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 strategy related to financial reporting standards, auditing and assurance standards. Responsible for preparing and issuing of accounting standards. Responsible for preparing and issuing of auditing and assurance standards (XBR, 2011). Other respon sibilities 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 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 mechanism is as follows: 1. The Financial Reporting  Standards Board (FRSB), which is a board of NZICA,  will submit the draft standards  to the Accounting Standards Review Board (ASRB) for consideration.    2. NZICA is responsible for setting up of auditing and assurance standards for its  members. 3.   The Professional Standards Board (PSB), which is another board  of NZICA, submits draft standards to NZICA’s Board for consideration and approval. 4. Standards approved  from NZICA are then obligatory on members.    5. Non-members of NZICA can  carry out statutory audits provided they belong to an overseas professional  accounting body, providing that the Registrar of Companies has approved the  individual or the professional accounting body to which they belong.    6. Hence, the standards approved by the NZICA Board do not form any binding in formal status in relation to  overseas-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 Minister of Commerce of New Zealand and it has been considered as a significant milestone in the establishment of the new