Document ID: chunk:federal_register_of_legislation:C2004C01070:clause:2_227
Version: federal_register_of_legislation:C2004C01070
Segment Type: clause
Provision Reference: sch 2 cl 227
Character Range: 518463–521306

227  AASB's functions and powers

Functions

 (1) The functions of the AASB are:
 (a) to develop a conceptual framework, not having the force of an accounting standard, for the purpose of evaluating proposed accounting standards and international standards; and
 (b) to make accounting standards under section 334 of the Corporations Law for the purposes of the national scheme laws; and
 (c) to formulate accounting standards for other purposes; and
 (d) to participate in and contribute to the development of a single set of accounting standards for world-wide use; and
 (e) to advance and promote the main objects of this Part.

Note 1: The standards made under paragraph (b) are given legal effect by the Corporations Law. The standards formulated under paragraph (c) do not have legal effect under the Corporations Law itself but may be applied or adopted by some other authority.

Note 2: See section 224 and sections 228 to 233 for the framework within which the AASB is to formulate and make accounting standards.

 (2) In carrying out its functions under paragraphs (1)(a) and (d), the AASB must have regard to the interests of Australian corporations which raise or propose to raise capital in major international financial centres.

Powers

 (3) The AASB has power to:
 (a) engage staff and consultants; and
 (b) establish committees, advisory panels and consultative groups; and
 (c) receive money contributed towards its operating costs; and
 (d) do anything else that is necessary for, or reasonably incidental to, the performance of its functions.

Manner of making and formulating standards

 (4) Without limiting paragraph (1)(b) or (c), the AASB may make or formulate an accounting standard by issuing the text of an international accounting standard. The text of the international accounting standard may be modified to the extent necessary to take account of the Australian legal or institutional environment and, in particular, to ensure that any disclosure and transparency provisions in the standard are appropriate to the Australian legal or institutional environment.

Manner of participating in the development of international standards

 (5) Without limiting paragraph (1)(d), the AASB may distribute the text of a draft international accounting standard (whether or not modified to take account of the Australian legal or institutional environment) for the purposes of consultation.

Constitutional basis

 (6) This Part confers functions and powers to the extent to which they are not in excess of the legislative power of the Commonwealth.

 (7) Without limiting subsection (6), this Part confers functions and powers to the extent to which doing so promotes, encourages and facilitates the integration and efficiency of, and investment in, Australia's national economy.

Division 2—Accounting standards