Commonwealth Consolidated Acts

AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION ACT 2001 - SECT 227

Functions

  (1)   The functions of the AASB are:

  (a)   to develop conceptual frameworks, not having the force of standards, for the purpose of evaluating:

  (i)   proposed accounting standards and international accounting standards; and

  (ii)   proposed sustainability standards and international sustainability standards; and

  (b)   to make accounting standards under section   334 of the Corporations Act for the purposes of the corporations legislation (other than the excluded provisions); and

  (c)   to formulate accounting standards for other purposes; and

  (ca)   to formulate sustainability standards; and

  (d)   to participate in and contribute to the development of each of the following for world - wide use:

  (i)   a single set of accounting standards;

  (ii)   a single set of sustainability standards; and

  (e)   to advance and promote the main objects of this Part.

Note 1:   The AASB was established by subsection   226(1) of the Australian Securities and Investments Commission Act 1989 and is continued in existence by section   261 of this Act.

Note 2:   The standards made under paragraph   (b) are given legal effect by the Corporations Act. The standards formulated under paragraph   (c) do not have legal effect under the Corporations Act itself but may be applied or adopted by some other authority.

Note 3:   The standards formulated under paragraph   (ca) do not have legal effect but may be applied or adopted by some other authority.

Note 4:   For the framework within which the AASB is to formulate and make these standards, see section   224 and Division   2.

  (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.

Power to establish committees etc.

  (3)   The AASB has power to establish committees, advisory panels and consultative groups.

Manner of making or formulating standards

  (4)   Without limiting subsection   (1), the AASB:

  (a)   may make or formulate an accounting standard by issuing the text of an international accounting standard; and

  (b)   may formulate a sustainability standard by issuing the text of an international sustainability standard.

  (5)   The text of an international standard referred to in subsection   (4) may be modified:

  (a)   to the extent necessary to take account of the Australian legal or institutional environment; and

  (b)   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

  (6)   Without limiting paragraph   (1)(d), the AASB may distribute for consultation the text of:

  (a)   a draft international accounting standard; or

  (b)   a draft international sustainability standard;

(whether or not modified to take account of the Australian legal or institutional environment).