Big chance, little effort, lots of benefits

Article Abstract:

The Accounting Standards Board (ASB) is looking into the possibility of exempting certain companies from the coverage of several statutory accounting requirements in order to lighten the regulatory burden they carry. This move has been prompted, in part, by concerns that smaller companies may be finding it exceedingly costly to abide with the ASB's standards. As part of its re-examination of the issue, the ASB published in Nov. 1994 a landmark report entitled 'Exemptions from Standards on Grounds of Size or Public Interest.' Among others, this report recommends that rules covering small company audits be substantially streamlined in order to free smaller companies from excessive rule-making. A review of the implications of such a relaxation of audit rules is also presented, in relation to the cost and compliance issues.

Regulation, Licensing, and Inspection of Miscellaneous Commercial Sectors, Accounting Services Regulation, Column, Auditing, Accounting services, Deregulation, Accounting law

Financial instruments: an international issue

Article Abstract:

The International Accounting Standards Committee (IASC) has issued E40, a draft standard that encompasses disclosure, measurement, and recognition standards for financial instruments such as cash receivables and currency options. The IASC's draft standard is similar to the Accounting Standards Commitee's ED 49 in that it proposes that the recognition of a financial asset or liability should be based on substance rather than form. The influence of the IASC's E40 on UK accounting is dependent on the extent that the E40 proposals reflect the current thinking of the Accounting Standards Board (ASB). Though the E40 mirrors the ASB's general aims, differences are expected to widen due to the constraints placed by Britain's company law, rather than to any fundamental differences in financial reporting principles.

Professional organizations, International Accounting Standards Board, Financial instruments

In anticipation of a maiden standard

Article Abstract:

The Accounting Standards Board (ASB) is finalizing its first standard, which is concerned with accounting for cash flow statements. The ASB's standard will be based on the Accounting Standards Committee's Exposure Draft (ED) 54, "Cash Flow Statements", which was promulgated to replace Statement of Standard Accounting Practice 10, "Statements of Source and Application of Funds". The ASB's standard is likely to be based on separating cash flows into financing, investing, and operating components. ED 54 lacked the recommendation that cash flow statements be based on actual transactions and legal form, a principle that the ASB would be wise to adopt.

Accounting, Cash flow