Reports on the Application of Accounting Principles

Current Status Next Steps

Project proposal approved.

To be determined.

OBJECTIVE AND SCOPE OF THIS PROJECT

Opinion shopping services, as described in Section 7600, Reports on the Application of Accounting Principles, are only rarely performed in practice today.

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Preliminary research suggests that entities (particularly public companies) do not ask their auditors for guidance when making accounting or financial statement disclosure decisions.  Instead, entities are engaging practitioners other than their auditors to provide advice on the appropriate application of complex aspects of a financial reporting framework. 

The AASB has undertaken a project to determine the appropriate course of action for Section 7600. The overall direction to take regarding the disposition of Section 7600 and various technical matters will be addressed.

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PROJECT NEWS & DECISION SUMMARIES

AASB Decision Summary – September 10-11, 2012
The AASB approved a project proposal to revise and clarify Section 7600, Reports on the Application of Accounting Principles. The AASB asked staff to conduct additional research on the nature and extent of services provided by public accountants to help entities properly follow the requirements in financial reporting frameworks to help refine the scope and direction of the project.

 

Disclaimer: This project summary has been prepared for information purposes only. Decisions reported are tentative and reflect only the current status of discussions on this project, which may change after further Board deliberations. Decisions to publish Handbook material are final only after a formal ballot process.