Document ID: chunk:federal_register_of_legislation:F2023C00337:reg:1:p8
Version: federal_register_of_legislation:F2023C00337
Segment Type: reg
Provision Reference: reg 1 (pt 8/23)
Character Range: 29519–32785

no objective and authoritative basis that has been generally recognised globally for judging the acceptability of general purpose frameworks.  In the absence of such a basis, financial reporting standards established by organisations that are authorised or recognised to promulgate standards to be used by certain types of entities are presumed to be acceptable for general purpose financial reports prepared by such entities, provided the organisations follow an established and transparent process involving deliberation and consideration of the views of a wide range of stakeholders.  Examples of such financial reporting standards include:

           * International Financial Reporting Standards (IFRSs) promulgated by the International Accounting Standards Board;

           * International Public Sector Accounting Standards (IPSASs) promulgated by the International Public Sector Accounting Standards Board; and

           * Accounting principles promulgated by an authorised or recognised standards setting organisation in a particular jurisdiction, provided the organisation follows an established and transparent process involving deliberation and consideration of the views of a wide range of stakeholders.

    These financial reporting standards are often identified as the applicable financial reporting framework in law or regulation governing the preparation of general purpose financial reports.

Financial reporting frameworks prescribed by law or regulation

A9.             In accordance with paragraph 6(a), the auditor is required to determine whether the financial reporting framework, to be applied in the preparation of the financial report, is acceptable.  In some jurisdictions, law or regulation may prescribe the financial reporting framework to be used in the preparation of a general purpose financial report for certain types of entities.  In the absence of indications to the contrary, such a financial reporting framework is presumed to be acceptable for a general purpose financial report prepared by such entities.  In the event that the framework is not considered to be acceptable, paragraphs 19‑20 apply.

Jurisdictions that do not have standards setting organisations or prescribed financial reporting frameworks

A10.         When an entity is registered or operating in a jurisdiction that does not have an authorised or recognised standards setting organisation, or where use of the financial reporting framework is not prescribed by law or regulation, management identifies a financial reporting framework to be applied in the preparation of the financial report.  Appendix 2 contains guidance on determining the acceptability of financial reporting frameworks in such circumstances.

Agreement of the Responsibilities of Management (Ref: Para. 6(b))

A11.         An audit in accordance with Australian Auditing Standards is conducted on the premise that management has acknowledged and understands that it has the responsibilities set out in paragraph 6(b).[11]   In certain jurisdictions, such responsibilities may be specified in law or regulation.  In others, there may be little or no legal or regulatory definition of such responsibilities.  Australian Auditing Standards do not override law or regulation in