The FRC provides broad oversight of the process for setting accounting standards in Australia.
The FRC appoints members of the AASB, other than the Chairman, and can issue broad strategic directions to the AASB.
However, the Australian Securities and Investments Commission Act 2001 limits the FRC’s ability to become involved in the technical deliberations of the AASB.
Like the AASB, the Auditing and Assurance Standards Board (AUASB) also operates under the Australian Securities and Investments Commission Act 2001 and is subject to oversight by the Financial Reporting Council. The AUASB develops auditing standards that apply under Australian company law. There is no direct relationship between the AASB and the AUASB, other than sharing offices and facilities.
The Australian Securities and Investments Commission (ASIC) is responsible for the enforcement of the accounting standards issued by the AASB under the Corporations Act 2001.
ASIC has the power to issue class orders, or specific orders to a company, to give relief from certain requirements of the Act, including the application of AASB standards, where it is satisfied that the statutory requirements for relief are met. ASIC may refer to significant issues that it sees in practice to the AASB for consideration.
The Australian Prudential Regulation Authority (APRA) is responsible for the regulation of banks, insurers and other authorised deposit-taking institutions. APRA considers the compliance of entities with AASB accounting standards as part of its oversight processes.
The Australian Stock Exchange (ASX) provides facilities for the listing and transfer of equities of listed public companies. The ASX expects listed entities to produce comparable general purpose financial statements in accordance with AASB accounting standards.