Accounting Answers

Solutions manual(a) to ac fri implement upship Comp some(prenominal) Accounting 8e prep atomic come in 18d by Ken Leo rear end Hoggett John Sweeting Jennie Radford pic John Wiley & Sons Australia, Ltd 2009 Chapter 1 Nature and regulation of companies REVIEW QUESTIONS 1. Out decipher the advantages of incorporation over other forms of organisation much(prenominal) as musical compositionnerships. The corporate form of organisation permits individuals to pick up vergeed liability.This confers on sh arholders a limit on their liability in the event of a winding up of the c all in aller to the mensuration (if whatsoever) protrudestanding on their sh bes. (S516). In the case of a partnership no such limitation applies (unless the partnership specifically adopts limited liability) and the insolvency of iodin or more partners can event in other solvent partners having to abide any losses and debts out of their own private as situates. 2. Distinguish among a proprietary lo dge and a state-supported attach to.A public company is one in which there is usually a substantial public interest in that the ownership of the companys sh ar capital is widely spread. earth companies argon entit military issue to raise capital through a sh be issue by issuing a disclosure record which entitles them to acquire their shares or unsecured bonds etc. listed on a stock exchange, such as the Australian Securities Exchange, to facilitate transferability. Proprietary companies on the other hand have specific limitations in legal injury of the amount and springions on its fundraising activities.Specific features of a proprietary company hold the need to have a share capital (unlike a public company which may be limited by take in charge and not merely shares) a implyment to have at least one shareholder and nevertheless one director (three directors for a public company) and not more than 50 shareholders (not including employee shareholders) not necessitate d to restrict the transfer of its shares (however it may elect to do so) the practice of the designation Pty or Proprietary in its give a panache a requirement not to engage in any fundraising activity which would require it to lodge a disclosure document with ASIC. . Distinguish between a king-size and a small proprietary company. What are the implications of beingness classified large rather than small? A small proprietary company is delimit in Section 45A of Corporations accomplishment 2001, as amended, as one which meets 2 of the quest three criteria * consolidate annual revenue less than $25 million *consolidated gross assets at the end of the pecuniary course is less than $12. 5 million l the companies and the entites it controls have fewer than 50 employees at the end of the fiscal social class. * These figures must be intractable in accordance with chronicle measures Part-time employees measured at sequester fraction of full-time If these criteria are not met the company will be a large proprietary. Small proprietary companies do not have to modernize formal fiscal statements or have them audited. However, they must keep sufficient bill records to allow preparation and audit of accounts if two 5% of their choose shareholders or ASIC request this to be done. Large proprietary companies, must prepare accounts in accordance with news calculate standards, have them audited, send them to shareholders and lodge them with ASIC (Section 292) 4.Outline the special features of a no-liability company. Companies engaged in the more tough area of mining exploration are most often memorialed as no-liability. Such companies have NL at the end of the company name and have the advantage of being more attractive to likely investors as unlike companies limited by the unpaid amount on their shares, there is no such liability on the part of shareholders to extend to the debts and liabilities of the companies. 5. What is the purpose of a certifica te of adaption? A certificate of registration is issued by ASIC as a part of the registration procedure.Provided the company complies with S117 of the Corporations Act, ASIC will give the company an ACN add up register the company issue a certificate that states the companys name, ACN No. etc. Once registered, the company is unresolved of performing all the functions of a corporate body. 6. What are replaceable rules and how do they differ from a physical com frame? Replaceable rules are the set of national rules (contained in the Corporations Act) governing the conduct of its operations between the company and its abut directors and between members themselves see example of such rules in ch 1 Section 1. . 3. If the rules are not choose by the company thusly(prenominal) they must draw up a constitution which will ascertain much of the same issues covered by the replacement rules but may be extended or modified by the promoters of the company. 7. Outline the of import features and purpose of a disclosure document. A disclosure document, particularly the prospectus, contains all the information necessary for investors to make an conscious assessment of the companys future prospects and other relevant matters including rights and liabilities attaching to securities monetary position, performance and prospects of the body issuing the securities interests of each director, proposed director, promoter, stockbroker and their professional advisers in any property acquired or proposed to be acquired with the funds derived from the securities issue. whether the securities issued will be quoted on a Stock Exchange. 8. In administering a company, the Corporations Act requires the guardianship of various books, registers and records. Outline these and briefly discuss their content.thither are a range of records required to be maintained by a company including (Minute books of the proceedings and decisions make at all directors and shareholders coming togethers as thoroughly as all resolutions passed without a meeting (s. 251A). If the company is a proprietary company with entirely one director, any declarations by this director must be minuted. (Financial records that will enable pecuniary statements to be hustling and audited from time to time in accordance with the Act (ss. 286, 292, 302 and 303). (Register of members, or share register, giving each members name nd address, and the date on which the entry of the members name is made on the register. If the company has a share capital, the register must in addition show the date on which an allotment of shares takes place, the number of shares in each allotment, the shares held by each member, the class of shares held, the share numbers (if any), the amount paid on the shares, and whether or not the shares are fully paid (s. 169). (Register of option holders to record the name and addresses of the holders of options over the shares of a company.The register must include the number and description of the shares over which options were granted, details of any event that must happen before the options can be good exampled, and any consideration for the grant of the options and for the exercise of the options (s. 170). Copies of documents which grant an option over shares must be kept with this register. (Register of debenture holders to record each debenture holders name and address, and the amount of the debentures held (s. 171). (Register of charges to record the details of any secured charges over the assets of the company (s. 271).This register must be open for inspection by any creditor or member of the company, without charge. 9. Outline the differences between shares and debentures. Ordinary shares attract no fixed rate of dividend, carry voting rights and may participate in surplus assets and profits of the company they re birth ownership of x% of the company. Ordinary shares are classified as equity. The company may issue shares either full y paid or partly paid (s. 254A). If partly paid shares are issued, the shareholder is liable to pay calls on the shares (except in the case of no-liability companies).A company also has the right to issue predilection shares, but may only do so either if there is a statement in its constitution setting out the rights of these shareholders or if these rights have been authorise by a special resolution of the company. not all preference shares are the same. Classification of preference shares as equity or liabilities depends on the rights and features of the shares judgment is required re which classification is appropriate. For example, redeemable, cumulative 10% preference shares, which are to be redeemed on a set date, are definitely liabilities. election shares redeemable at the option of the company may or may not be liabilities, depending on the probability of the company redeeming them. Debentures are issued by the company raise funds but are borrowings, not equity. Debentu res may be secured. A trust deed/trustee must be accomplished to encourage the rights of debenture holders. 10. What are the main reasons for the festering of be regulations? The history of report regulation had its origins in the industrialised European settlement of the late 18th century.The social, political and economic changes which occurred saw the gradual moderate of the importance of family enterprises and the separation of ownership from control as the control of entities was delegated by owners to agents. The growth in the number and size of joint stock companies in the late nineteenth century prompted the rise of disclosure although, initially, this focussed on stewardship. The great complexity of organisations in the mid to late twentieth century gradually led such disclosure to develop into a more sophisticated form of fiscal inform, which stay an on-going process. 11.Does a company have to coincide with chronicle standards in differentiate to show a acce pted and fair view of its financial affairs? Discuss. Before the early 1990s, the directors of a company could elect not to comply with an method of accounting standard issued by the AASB if they believed the particular standards would cause the accounts not to present a unbent and fair view. This true and fair override no longer exists and directors must now comply with applicable accounting standards and add any additional information in the notes to the financial statements if they believe adherence to the standards does not present a true and fair view.Compliance with standards therefore has become the norm, resulting in an increased interest, both prescribed and negative, in the requirements of accounting standards by different lobby convocations, particularly among those required to prepare financial statements. 12. What are the actual arrangements for setting accounting standards in Australia? The AASB under the auspices of the Financial account Council is entrusted wit h the task of qualification accounting standards both for the purposes of the Corporations Act and for the public and not-for-profit firmaments in Australia. unwrap Figure 1. 1 in role 1. 7. 5. 13. Distinguish between the pursual organisations and their roles in the regulation of financial inform in Australia (the Financial Reporting Council (FRC) (the Australian Accounting Standards notice (AASB) (the world-wide Accounting Standards Board (IASB) (the Inter issue Financial Reporting Interpretations commission (IFRIC) (the Australian Securities and Investments Commission (ASIC) (the Australian Securities Exchange (ASX) (the Financial Reporting circuit card (FRP).Financial Reporting Council (FRC) The main role of the FRC is to act as an overseer and advisory body to the standard setter, the AASB. The main functions of the FRC under the ASIC Act 1989, s. 225 as amended in 1999, are to (oversee the process for setting accounting standards and give the Minister reports and advi ce on that process (appoint AASB members (other than the chairperson) (approve and monitor the AASBs priorities, business plan, budget and staffing arrangements (determine the AASBs broad strategic guardianship give the AASB directions, advice or feedback on matters of world-wide policy and procedures (monitor the development of transnational accounting standards and the accounting standards that apply in major international financial centres, and further the development of a single set of accounting standards for ecumenical use with appropriate regard to international developments promote the adoption of international best practice accounting standards in the Australian accounting standard-setting process if this is in the best interests of both the private and public sectors of the Australian economy (monitor the operation of accounting standards to ensure their continued relevance and their effectiveness in achieving their objectives in measure of both the private and public sectors of the Australian economy, as well as the effectiveness of the AASBs consultatory arrangements (seek contributions towards the costs of the Australian accounting standard-setting process (monitor and periodically review the level of funding and funding arrangements for the AASB (establish appropriate consultative mechanisms advance and promote the objectives of standard setting as specified in the Act (perform any other functions that the Minister confers on the FRC by written notice to the chairperson. A major policy direction of the FRC that has affected the agenda of the AASB is the formalisation of a policy of adopting the accounting standards of the International Accounting Standards Board (IASB) for action to account periods beginning on or after 1 January 2005. (This includes also the adoption of Interpretations issued by the International Financial Reporting Interpretations Committee (IFRIC) for use in the Australian context. ) Australian Accounting Standards Boar d (AASB) The functions of the AASB, check to s. 27(1) of the ASIC Act 1989, are to (develop a sentimentual frame mesh (not having the force of an accounting standard) for the purpose of evaluating proposed accounting standards and international standards (make accounting standards for the purpose of the Corporations Act (formulate accounting standards for other purposes, e. g. for non-companies, the public sector and the not-for-profit sector (participate in and contribute to the development of a single set of accounting standards for worldwide use (advance and promote the main objectives of maturation accounting standards. The AASB must develop accounting standards not only for the corporate sector but also for other sectors, such as the public sector and the not-for-profit sector.The objectives of developing accounting standards are (1) to facilitate the development of accounting standards that require the provision of financial information that (allows users to make and evalua te decisions about allocating scarce resources (helps directors to rout out their obligations in relation to financial reporting (is relevant to assessing performance, financial position, financing and investment (is relevant and real (facilitates comparability (is readily understandable. (2) to facilitate the Australian economy by (reducing the cost of capital (enabling Australian entities to cope effectively overseas (having accounting standards that are clearly stated and easy to understand. (3) to maintain investor confidence in the Australian economy (including its capital markets).In performing its functions, the AASB is required to succeed the broad strategic directions determined by the FRC. The AASB may formulate accounting standards which are of general or limited application, in that the Board may specify the entities, time, place or circumstance to which the standard applies. Furthermore, as long as it is practical to do so, the AASB is required to conduct a costben efit analysis of the impact of a proposed accounting standard before making or formulating the standard. However, the costbenefit analysis is not necessary where the standard is being made or formulated by issuing the text of an international standard.The AASB conducts its meetings in a forum open to the public, which (hopefully) increases faith in the due process system of standard setting. In line with the FRCs main function of overseeing the process of setting accounting standards, the AASB is required to adopt IASB standards. The Australian accounting standards and their international counterparts are identical, with three exceptions Where some international accounting standards provide a range of facultative treatments, the Australian accounting standard may not allow all options. However, the disallowance of any IASB optional treatments in Australia is rare, as evidenced by the AASBs behaviour since 2005. Some Australian accounting standards may require more information to b e disclosed in the notes to the financial statements than that required by the equivalent IASB standard. Australian accounting standards contain, where applicable, extra paragraphs relevant to entities in the not-for-profit sector. IASB standards are written for application within the business sector only. Besides issuing accounting standards that are equivalent to the IASBs standards, the AASB has continued to issue accounting standards relevant to the public sector, as well as accounting standards that relate fixly to the Australian legal environment, e. g. AASB 1046 theater director and Executive Disclosures by Disclosing Entities. International Accounting Standards Board (IASB)The IASBs mission statement is described as follows on its web site The International Accounting Standards Board is an single-handed, privately-funded accounting standard setter( The IASB is committed to developing, in the public interest, a single set of high quality, understandable and enforceable glo bal accounting standards that require transparent and comparable information in general purpose financial statements. In addition, the IASB co-operates with national accounting standard setters to achieve crossroad in accounting standards around the world. Following the direction given by the FRC in 2002, the AASB has espouse the standards issued by the IASB as from 1 January 2005. Hence, the financial statements prepared by Australian companies are comparable with those prepared by entities in other countries which also have adopted IASB standards. This should allow for greater pinch of financial statements worldwide, and lead to a more efficient flow of capital across national boundaries.The IASB has signed an throwment with the Financial Accounting Standards Board (FASB), the body responsible for issuing accounting standards in the United States. The agreement requires both bodies to work together towards convergence of global accounting standards. The aim is to agree on high -quality solutions to quick and future accounting issues. If such agreement could be reached, potentially there would be one set of global accounting standards. Arguably, for better or worse, the result of this agreement appears to be a gradual adoption of FASB standards by the IASB as its own. International Financial Reporting Interpretations Committee (IFRIC) The IFRIC has the task of reviewing on a timely basis, within the context f existing international accounting standards and the IASB framework, accounting issues that are likely to receive divergent or unacceptable treatment in the absence of authoritative guidance, with a view to reaching consensus as to the appropriate accounting treatment. The IFRIC considers issues of reasonably widespread importance, and not issues of concern to only a small set of enterprises. The interpretations cover (newly identified financial reporting issues not specifically dealt with in IFRSs (issues where unsatisfactory or conflicting interpre tations have developed, or seem likely to develop in the absence of authoritative guidance, with a view to reaching a consensus on the appropriate treatment.The AASB has adopted the Interpretations issued by the IFRIC for use by Australian companies as from 1 January 2005, and modifies them if necessary for the not-for-profit sector in Australia. Australian Securities and Investments Commission (ASIC) The ASIC is an independent government body set up to enforce and administer the Corporations Act and financial services laws to protect consumers, investors and creditors. ASIC regulates and informs the public about Australian companies, financial markets, financial services organisations and professionals who deal and advise in investments, superannuation, insurance, sterilize taking and credit. The Australian Securities and Investments Commission Act 2001 requires ASIC to (uphold the law uniformly, effectively and quickly promote confident and informed participation by investors and consumers in the financial system (make information about companies and other bodies available to the public (improve the performance of the financial system and the entities within it. One of the roles of ASIC is to reduce fraud and unfair practices in financial markets and financial products so that consumers can use them confidently and companies and markets can operate effectively. In an accounting context, as part of its role, ASIC also attempts to ensure that a companys financial statements lodged with it under the requirements of the Corporations Act comply with accounting standards, if applicable. Australian Securities Exchange (ASX). The ASX is a public company operating Australias share markets. It oversees both the shares and future exchanges.In an accounting context, it is particularly concerned with improving the disclosure of information in the financial reports of companies listed with it on the various stock exchanges throughout Australia. It exercises its influence by way of the Listing Rules a set of rules with which companies must comply if they wish to be listed, and remain listed, on the stock exchange. Financial Reporting Panel (FRP) The FRP, established in 2004, has the function of resolving disputes between the Australian Securities and Investments Commission and companies concerning accounting treatments in their financial reports. The purpose for establishing FRP is to remove the need to initiate legal proceedings in Court in order to resolve a financial reporting matter.FRP is designed to provide an efficient and cost effective way of relations with disputes, the opportunity to be heard by persons with relevant expertise, and remove concerns about the courts limited understanding of accounting standards. 14. To which entities do accounting standards apply? Discuss the nature of a reporting entity, and consider reasons for the concept being replaced by one of public accountability. Accounting standards apply to the general-purpose financial statements/reports of entities which are reporting entities and also to those entities which decide to prepare general-purpose financial statements even if they are not reporting entities. The AASB, in SAC 1, provided the following definition of a reporting entityReporting entities are all entities (including economic entities) in respect of which it is reasonable to expect the existence of users who rely on the entitys general purpose financial report for information that will be useful to them for making and evaluating decisions about the allocation of scarce resources. There is no definition of a reporting entity in the IASBs Framework at this stage. All reporting entities are subject to accounting standards when preparing their general-purpose financial statements. Entities such as small proprietary companies, family trusts, partnerships, sole traders and wholly owned subsidiaries of Australian reporting entities will normally not be required to prepare general purpose statements in accordance with accounting standards.Following the release of the IASBs Exposure limn of a Proposed IFRS for Small and Medium-Sized Entities, (SMEs) published in February 2007, the AASB issued, in May of that year, Invitation to signalize ITC 12, proposing to revise the differential reporting regime in Australia by switching the focus away from whether an entity is/is not a reporting entity to whether the entity (subject to a size test) is required to prepare a general-purpose financial statement/report and is publicly accountable. Public accountability is defined in the IASBs ED on SMEs as accountability to those present and potential resource providers and others external to the entity who make economic decisions but who are not in a position to demand reports tailored to meet their particular information needs.An entity has public accountability if (a) it has issued (or is in the process of issuing) debt or equity instruments in a public market or (b) it holds as sets in a fiduciary electrical condenser for a broad group of outsiders, such as a bank, insurance company, securities broker/dealer, pension (or superannuation) fund, usual fund or investment bank. The implications are that if an entity is publicly accountable or satisfies a size test then it will be required to apply Australian equivalents to IFRSs in its general-purpose financial statements. If it is not publicly accountable, and does not meet the size test, then the entity need apply the Australian equivalent of IFRS for SMEs only. See figure 1. 3 in section 1. 9. 2 of the text for a flowchart showing the ITC 12 proposed changes, which, at the time of writing, are expected to be accepted by the AASB for 2009 and beyond CASE STUDIES cause show 1 Legal obligationsVisit the website of the Australian governments Attorney-Generals Department dealing with the law (www. comlaw. gov. au) and acquire the Corporations Act 2001. Assuming that you are the director of a small proprietary company, find the small business guide and learn of your obligations under the Act for managing your business. Prepare a brief report for the tutorial class. The Small business organisation Guide in the Corporations Act can be found following Section 111J. The guide summarises the main rules in the Corporations Act (the Corporations Act 2001) that apply to proprietary companies limited by sharesthe most common type of company utilise by small business.The guide gives a general overview of the Corporations Act as it applies to those companies and directs readers to the operative provisions in the Corporations Act. Students, in their capacity as would-be directors, are required to present a report to the class, summarising the requirements of the Guide. Such topics to be covered include The meaning of registration, including shareholders and directors liabilities Rules for internal management of a company Company structure and setting up a new company Continuing obligations onc e the company is set up Company directors, secretaries and shareholders Who can sign company documents living the companys operations Returns to shareholders Annual financial reports and audit Disagreements within the company Companies in financial trouble Case study 2 The AASB Visit the website of the Australian Accounting Standards Board (www. aasb. com. au) and find out the following items Who is the Chairman of the AASB? Who are the members, and which organisations do they represent? Which accounting standards have been issued in the past year? Why are there differences in the numbering systems for current accounting standards (eg. AASB x, AASB xxx and AASB xxxx)? What are the current projects (if any) that the AASB is working on in cooperation with the IASB?Assuming that you already have access to the AASB website Chairman of the AASB Go to AASB Board, then Current Board Members . Current chairman is David Boymal Members of the AASB and organisations represented Sta y in the same location and the names and organisations represented on the AASB are all shown. Dont forget to include the observers as well. Comment too many people from Melbourne No academics on the board? Accounting standards issued in the past year On the AASB website, go to Quick Links, then Standards. Read from Table 1 all of the standards issued in the delay year. Different numbering systems for standards See Pronouncements for information, plus the section 1. 7. 4 in the text.AASB x represent those standards adopted by the AASB from the IFRSs of the IASB AASB xxx represent those standards adopted by the AASB from the IASs of the IASB and its predecessor the IASC AASB xxxx represent those standards issued exclusively by the AASB for companies in the Australian context In addition, the AAS standards consist of standards issued by the AASB for special organisations e. g. superannuation plans, government Current projects On the AASB website, go to Work in Progress, then Projects. It would appear that there are no specific projects at the moment being worked on by the AASB in cooperation with the IASB. The AASB is one of several standard setting boards that negotiate with the IASB and merely provide submissions to the IASB on various topics. See also AASB Submissions to the IASB on the website. Also check the word of honor section and Latest News on the website. Case study 3 Setting up a companyVisit the website of the Australian Securities and Investment Commission (www. asic. gov. au) and find the form(s) that you must fill out to cash in ones chips a company, assuming that you wish to set up a small proprietary company to take over your current successful business, which has been operating as a partnership (with three partners) in the past. On the website of the ASIC, go to Download forms, select the form 201 for Registering a company. Students should print the form and fill it out as if they wish to set up a proprietary company, with more than one own er shareholder. Case study 4 The IASB Visit the website of the International Accounting Standards Board (www. iasb. org. k) and find and report to the class on the following pieces of information The document of Understanding of 2005 between the IASB and the FASB of the United States Which accounting standards have been changed as a result of the Memorandum of Understanding The membership of the IASB and which countries the members come from The goals of the IASB 1. Memorandum of Understanding On the IASB website, go to around Us, then click on About IASB, and then on the Memorandum of Understanding with the FASB. A full pdf translation of the Memorandum can be found here. In relation to the Memorandum the IASB website statesAfter their joint meeting in September 2002, the US Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) issued their Norwalk capital of New Hampshire in which they each acknowledged their commitment to the development of high quality, compatible accounting standards that could be used for both domestic and cross-border financial reporting. At that meeting, the FASB and the IASB pledged to use their best efforts to make their existing financial reporting standards fully compatible as soon as is practicable and to co-ordinate their future work programmes to ensure that once achieved, compatibility is maintained. At their meetings in April and October 2005, the FASB and the IASB reaffirmed their commitment to the convergence of US generally accepted accounting principles (US GAAP) and International Financial Reporting Standards (IFRSs). A common set of high quality global standards remains the long-term strategic priority of both the FASB and the IASB. 2. Accounting standards changed/ to be changed as a result of the Memorandum of Understanding On the IASB website, go to About Us, then click on About IASB, and then on the Memorandum of Understanding with the FASB. A full pdf version of the Memorandum can be found here. Not many standards have yet been changed, but plenty of standards are on the agenda for change. From the Memorandum , the topics for short-term convergence include To be examined by the FASB To be examined by the IASB bazar value option* adoption costs Impairment (jointly with the IASB) Impairment (jointly with the FASB) Income tax (jointly with the IASB) Income tax (jointly with the FASB) Investment properties** Government grants Research and development colligation ventures Subsequent events Segment reporting FASB Note IASB Note *On the active agenda at 1 July 2005 Topics are part of or to be added to the IASBs short-term ** To be considered by the FASB as part of the fair value convergence project, which is already on the agenda. option project Longer term projects include the following, from the Memorandum of Understanding The boards set the following goals for 2008 for convergence topics already on either their active agendas or the explore programmes Topics already on an Active schedule Convergence topic Current locating on the FASB Current status on the Progress expected to be achieved by 2008 Agenda IASB Agenda 1.Business combinations On agenda deliberations inOn agenda To have issued converged standards process deliberations in (projected for 2007), the contents and process effective dates of which to be determined after taking full account of comments received in solvent to the Exposure Drafts. 2. Consolidations On agenda currently On agenda no To implement work aimed at the completed inactive publication yet development of converged standards as a matter of high priority. 3.Fair value measurement Completed standard expected On agenda To have issued converged guidance aimed at guidance in the first half of 2006 deliberations in providing consistency in the application of process existing fair value requirements. 1 4. Liabilities and equity On agenda no publicatio n On agenda (will follow To have issued one or more due process distinctions yet FASBs lead) documents relating to a proposed standard. 5. Performance reporting On agenda no publication Exposure draft on a To have issued one or more due process yet first phase documents on the full range of topics in this project. 6.Post-retirement benefits On agenda deliberations Not yet on the agenda To have issued one or more due process (including pensions) underway on the first phase documents relating to a proposed standard. of multi-phase project 7. Revenue recognition On agenda no publication On agenda no To have issued one or more due process yet publication yet documents relating to a proposed comprehensive standard. The objective of the goals set out above is to provide a time frame for convergence efforts in the context of both the objective of removing the need for IFRS reconciliation requirements by 2009 and the existing agendas of the FASB and the IASB. The F ASB and the IASB will follow their normal due process when adding items to the agenda. Items designated as convergence topics among the existing research programmes of the boards include Topics already being researched, but not yet on an Active Agenda Convergence topic Current status on the FASBCurrent status on the IASBProgress expected to be achieved by Agenda Agenda 2008 1.Derecognition Currently in the On research agenda To have issued a due process document pre-agenda research phase relating to the results of staff research efforts. 2. Financial instruments On research agenda and On research agenda and To have issued one or more due process (replacement of existing working group established working group established documents relating to the accounting standards) for financial instruments. 3. Membership of IASB and member countries Go to the IASB website and see, About us. sink in on About IASB and there you will find the information about the Chairman, currentl y Sir David Tweedie, the Vice-Chairman and all members of the IASB, and the countries from which they came by reading each persons information sheet. 4. Goals of the IASB Go to the IASB website and see About us. Click on About IASB and there you will find the IASB objectives. Case study 5 ASIC Visit the website of the Australian Securities and Investments Commission (www. asic. gov. au) and find out and report to the class on the following Who the ASIC is and its role The tips given to potential shareholders regarding the reading of a companys prospectus A list of the policy statements and practice notes issued by the ASIC Whats new to the website. 1. ASIC and its roleOn the ASIC website, go to About ASIC and look up Our Role 2. Tips to prospective shareholders re prospectuses From the ASIC website visit FIDO, the ASIC s consumer website. From there, go to check our lists and click on prospectuses. The ASIC has information about prospectuses which changes sort of regularly. Se e what tips you can find about prospectuses, assuming that you are a prospective investor. 3. Policy statements and regulative guides issued From ASICs home page, go to Publications and then to Policies. Both the policy list and the regulatory guides are friendly here. 4. Whats new See ASICs home page, and Whats New features on the home page.