Which of the following Statement of Accounting Concepts are still operational in Australia?
A)Statement of Accounting Concepts 1 to 4
B)Statement of Accounting Concepts 1 to 3
C)Statement of Accounting Concepts 1 and 2
D)Statement of Accounting Concepts 3 and 4
E)Statement of Accounting Concepts 2 and 3

Question

Quizplus · Accepted Answer

As of my knowledge cutoff date in early 2023, the Statement of Accounting Concepts (SAC) framework has been largely superseded by the Australian Accounting Standards Board (AASB) adopting the International Financial Reporting Standards (IFRS) as Australian Accounting Standards for for-profit entities. However, the SACs were originally developed to provide a conceptual framework for financial reporting in Australia.
The SACs that were issued are as follows:
- SAC 1 "Definition of the Reporting Entity"
- SAC 2 "Objective of General Purpose Financial Reporting"
- SAC 3 "Qualitative Characteristics of Financial Information"
- SAC 4 "Definition and Recognition of the Elements of Financial Statements"
The transition to the IFRS framework meant that the specific SACs are no longer directly operational in the same way they were when initially issued. Instead, the conceptual framework underlying the IFRS, which is now part of the AASB's framework, serves a similar purpose.
However, some of the principles and concepts from the original SACs may still be reflected in the current accounting standards and practices in Australia, as they would have influenced the development of the Australian Accounting Standards.
Therefore, none of the options provided (1 to 4, 1 to 3, 1 and 2, 3 and 4, or 2 and 3) accurately represent the current operational status of the Statement of Accounting Concepts in Australia, as the SACs have been effectively replaced by the conceptual framework of the IFRS. However, it is important to note that the SACs may still have some historical significance and could be referenced for their contribution to the development of accounting standards and practices in Australia.

Which of the Following Statement of Accounting Concepts Are Still