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The AASB is required to advance and promote the main objects of Part 12, section 224, of the ASIC Act:
(a) to facilitate the development of accounting standards that require the provision of financial information that:
- allows users to make and evaluate decisions about allocating scarce resources
- assists directors to discharge their obligations in relation to financial reporting
- is relevant to assessing performance, financial position, financing and investment
- is relevant and reliable
- facilitates comparability
- is readily understandable.
(b) to facilitate the Australian economy by:
- reducing the cost of capital
- enabling Australian entities to compete effectively overseas
- having accounting standards that are clearly stated and easy to understand.
(c) to maintain investor confidence in the Australian economy (including its capital markets).
Part 12, section 227, of the ASIC Act provides, among other things, that:
(1) The functions of the AASB are:
- to develop a conceptual framework, not having the force of an accounting standard, for the purpose of evaluating proposed accounting standards and international standards
- to make accounting standards under section 334 of the Corporations Act 2001 for the purposes of the Corporations legislation (other than the excluded provisions)
- to formulate accounting standards for other purposes
- to participate in and contribute to the development of a single set of accounting standards for worldwide use
- to advance and promote the main objects of this Part.
(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.