In adopting the standards of IASB,Australian entities are required to comply with:
A)the Australian Conceptual Framework and Statement of Accounting Concepts 1 to 4;
B)the Australian Conceptual Framework and Statement of Accounting Concepts 3 and 4;
C)the IASB Framework and the Statement of Accounting Concepts 3 and 4;
D)the IASB Framework and the Statement of Accounting Concepts 1 and 2;
E)None of the given answers

Question

Quizplus · Accepted Answer

Australian entities that report under the International Financial Reporting Standards (IFRS) are required to comply with the standards as issued by the International Accounting Standards Board (IASB). In Australia, these standards are adopted and issued as Australian Accounting Standards by the Australian Accounting Standards Board (AASB).
When it comes to conceptual frameworks, Australian entities are expected to refer to the Conceptual Framework for Financial Reporting as issued by the IASB. This framework provides the underlying principles for the development of IFRS and guides the interpretation and application of accounting standards.
The Australian Conceptual Framework and Statements of Accounting Concepts were developed by the AASB and its predecessor, the Australian Accounting Research Foundation (AARF), to provide a conceptual basis for the development of Australian Accounting Standards. However, with the adoption of IFRS in Australia, the focus shifted to the IASB's Conceptual Framework.
Therefore, the correct answer to the question is:
3. the IASB Framework and the Statement of Accounting Concepts 3 and 4;
This answer reflects the requirement for Australian entities to follow the IASB's Conceptual Framework while also recognizing that certain domestic Statements of Accounting Concepts may still be relevant for understanding and applying the specific Australian context where applicable. However, it's important to note that the primary reference for the preparation of financial statements under IFRS would be the IASB Framework. Statements of Accounting Concepts 3 and 4 may provide additional guidance, but they do not override the IASB Framework.

In Adopting the Standards of IASB,Australian Entities Are Required to Comply