Accounting Answers

Solutions Manual to ac come with Comp any(prenominal) report 8e prep bed by Ken Leo gutter Hoggett John Sweeting Jennie Radford pic John Wiley & Sons Australia, Ltd 2009 Chapter 1 Nature and regulation of companies REVIEW QUESTIONS 1. Outline the advantages of incorporation oer a nonher(prenominal) forms of memorial tablet much(prenominal) as leagues. The incorporated form of organisation permits individuals to take for limited liability.This confers on sh beholders a limit on their liability in the event of a winding up of the high society to the amount (if any) unpaying on their shargons. (S516). In the case of a partnership no such limitation applies (un little the partnership specific in ally adopts limited liability) and the insolvency of iodine or more partners can ensue in different outcome partners having to contri excepte any losses and debts out of their own common soldier as trammels. 2. blot amongst a proprietary caller and a macrocosm alliance.A rea lity go with is iodine in which there is usually a substantial populace interest in that the ownership of the fraternitys sh be jacket crown is widely spread. Public companies ar entitled to raise seat of administration by means of a sh argon issue by issuance a divine revelation document which entitles them to obtain their sh atomic number 18s or debentures etc. listed on a variant exchange, such as the Australian Securities change everyplace, to facilitate transferability. Proprietary companies on the other hand confine specific limitations in terms of the amount and restrictions on its fundraising activities.Specific features of a proprietary phoner imply the need to thrust a share capital ( impertinent a universe company which whitethorn be limited by guarantee and non merely shares) a guidement to throw away at least one shareholder and barely one director ( triad directors for a public company) and not more than 50 shareholders (not including employ ee shareholders) not requisite to restrict the transfer of its shares (however it may elect to do so) the determination of the designation Pty or Proprietary in its put up a requirement not to engage in any fundraising activity which would require it to beat a revelation document with ASIC. . Distinguish between a large and a minuscular proprietary company. What are the implications of creation classified advertisement large rather than small? A small proprietary company is defined in Section 45A of Corporations personation 2001, as revise, as one which pairs 2 of the following three criteria *consolidated annual revenue less than $25 million *consolidated gross as repairs at the end of the monetary year is less than $12. 5 million l the companies and the entites it controls adopt few than 50 employees at the end of the monetary year. * These figures essential be hardened in accordance with score system standards Part-time employees measured at countenance f raction of full-time If these criteria are not met the company will be a large proprietary. Small proprietary companies do not have to prepare formal monetary fiscal statements or have them get worded. However, they moldinessiness sustain sufficient explanation records to allow preparation and audit of accounts if either 5% of their voting shareholders or ASIC request this to be done. Large proprietary companies, must prepare accounts in accordance with write up 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 imaginary area of mining exploration are most often biographyed as no-liability. Such companies have NL at the end of the company name and have the advantage of being more attr expeditious to authorisation investors as unlike companies limited by the unpaid amount on their shares, there is no such liability on the part of shareholders to contribute to the debts and liabilities of the companies. 5. What is the end of a certificate of registration? A certificate of registration is issued by ASIC as a part of the registration procedure.Provided the company complies with S117 of the Corporations impress, ASIC will give the company an ACN Number register the company issue a certificate that states the companys name, ACN no. etc. Once registered, the company is capable of performing all the stage c oncerns of a corporate body. 6. What are replaceable rules and how do they differ from a musical composition? Replaceable rules are the coif of internal rules (contained in the Corporations proceed) governing the fetch of its operations between the company and its member directors and between members themselves see example of such rules in ch 1 Section 1. . 3. If the rules are not select by the company past they must draw up a record which will cover much of the same issues covered by the refilling rules bu t may be extended or modified by the advancers of the company. 7. Outline the main features and purpose of a revelation document. A revelation document, finically the prospectus, contains all the information necessary for investors to make an informed perspicacity of the companys future prospects and other relevant matters including rights and liabilities attaching to securities pecuniary position, performance and prospects of the body issuing the securities interests of distributively 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 keeping of various books, registers and records. Outline these and truncatedly handle their content.There are a range of records required to be hold by a company including (Min ute books of the proceedings and decisions do at all directors and shareholders meetings as thoroughly as all resolutions passed without a meeting (s. 251A). If the company is a proprietary company with only one director, any declarations by this director must be minuted. ( financial records that will enable financial statements to be prepared and audited from time to time in accordance with the Act (ss. 286, 292, 302 and 303). (Register of members, or share register, giving distributively members name nd affixress, and the date on which the entry of the members name is make 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 to the full paid (s. 169). (Register of survival of the fittest holders to record the names and addresses of the holders of options over the shares of a company.The register must entangle the number and description of the shares over which options were admited, details of any event that must happen before the options can be exercised, 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 unbroken 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 as bent-grasss 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 set(p) rate of dividend, carry voting rights and may participate in redundancy assets and profits of the company they represent ownership of x% of the company. Ordinary shares are classified as integrity. The company may issue shares either fully 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 withal has the right to issue resource shares, but may only do so either if there is a statement in its constitution ground out the rights of these shareholders or if these rights have been approved by a special resolution of the company. Not all orientation 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 earmark. For example, redeemable, cumulative 10% preference shares, which are to be redeemed on a set date, are definitely liabilities.Preference 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. Debentures may be secured. A trust exploit/trustee must be realized to foster the rights of debenture holders. 10. What are the main reasons for the developing of account regulations? The history of history regulation had its origins in the industrialised European settlement of the late 18th century.The social, political and stinting changes which occurred saw the gradual decline of the importance of family enterp ejects and the separation of ownership from control as the control of entities was delegated by owners to agents. The growth in the number and coat of joint stock companies in the late nineteenth century prompted the rise of disclosure although, initially, this focused on stewardship. The greater complexity of organisations in the middle to late twentieth century gradually led such disclosure to develop into a more sophisticated form of financ ial inform, which carcass an ongoing assist. 11.Does a company have to comply with write up standards in order to show a true and fair view of its financial affairs? Discuss. Before the early 1990s, the directors of a company could elect not to comply with an accounting standard issued by the AASB if they believed the particular standards would cause the accounts not to present a true 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 shackle to the standards does not present a true and fair view.Compliance with standards thus has become the norm, resulting in an increased interest, twain positive and negative, in the requirements of accounting standards by different lobby groups, particularly among those required to prepare financial statements. 12. What are the current arrangements for setting accounting stan dards in Australia? The AASB under the protective cover of the financial Reporting Council is entrusted with the task of reservation accounting standards both for the purposes of the Corporations Act and for the public and not-for-profit domains in Australia. enamour Figure 1. 1 in ingredient 1. 7. 5. 13. Distinguish between the following organisations and their roles in the regulation of financial insurance coverage in Australia (the fiscal Reporting Council (FRC) (the Australian write up Standards Board (AASB) (the worldwide be Standards Board (IASB) (the worldwide Financial Reporting Interpretations Committee (IFRIC) (the Australian Securities and Investments Com agency (ASIC) (the Australian Securities Exchange (ASX) (the Financial Reporting Panel (FRP).Financial Reporting Council (FRC) The main role of the FRC is to act as an overseer and consultative body to the standard setter, the AASB. The main functions of the FRC under the ASIC Act 1989, s. 225 as amended in 1 999, are to (oversee the outgrowth for setting accounting standards and give the minister reports and advice on that serve well (appoint AASB members (other than the chairperson) (approve and monitor the AASBs priorities, business plan, budget and laging arrangements (determine the AASBs broad strategic direction give the AASB directions, advice or feedback on matters of usual 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 integrity set of accounting standards for worldwide use with appropriate regard to international developments promote the acceptance of international best practice accounting standards in the Australian accounting standard-setting fulfill if this is in the best interests of both the hidden and public sectors of the Australian economy (monitor the operation of accounting standards to ensure their continue relevance and their effectiveness in achieving their accusatives in respect of both the private and public sectors of the Australian economy, as well as the effectiveness of the AASBs consultative arrangements (seek contributions towards the lives of the Australian accounting standard-setting process (monitor and periodically go over 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 schedule of the AASB is the formalisation of a policy of adopting the accounting standards of the International Accounting Standards Board (IASB) for application to describe periods beginning on or by and by 1 January 2005. (This accepts also the adoption of Interpretations issued by the International Fin ancial Reporting Interpretations Committee (IFRIC) for use in the Australian context. ) Australian Accounting Standards Board (AASB) The functions of the AASB, according to s. 27(1) of the ASIC Act 1989, are to (develop a conceptual frame plump (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 unity set of accounting standards for worldwide use (advance and promote the main objectives of exploitation 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 evaluate decisions most allocating scarce resources (helps directors to discharge their obligations in relation to financial inform (is relevant to assessing performance, financial position, financing and investment (is relevant and reliable (facilitates comparability (is pronto understandable. (2) to facilitate the Australian economy by (reducing the cost of capital (enabling Australian entities to compete effectively overseas (having accounting standards that are clearly verbalize 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 follow the broad strategic directions intractable by the FRC. The AASB may formulate accounting standards which are of command or limited application, in that the Board may specify the entities, time, place or cir cumstance to which the standard applies. Furthermore, as long as it is practicable to do so, the AASB is required to conduct a costbenefit analysis of the touch on 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 tolerate a range of optional treatments, the Australian accounting standard may not allow all options. However, the disallowance of any IASB optional treatments in Au stralia is rare, as evidenced by the AASBs behaviour since 2005. Some Australian accounting standards may require more information to be disclosed in the notes to the financial statements than that required by the equivalent IASB standard. Australian accounting standards contain, where applicable, scanty paragraphs relevant to entities in the not-for-profit sector. IASB standards are written for application indoors 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 solely to the Australian legal environment, e. g. AASB 1046 conductor 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 independent, privately-funded accounting standard sette r( The IASB is committed to developing, in the public interest, a single set of high quality, understandable and enforceable spheric accounting standards that require transparent and comparable information in frequent purpose financial statements. In addition, the IASB co-operates with national accounting standard setters to extend to convergence in accounting standards around the world. Following the direction effrontery by the FRC in 2002, the AASB has adopted 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 apprehensiveness of financial statements worldwide, and lead to a more efficient head for the hills of capital across national boundaries.The IASB has signed an agreement with the Financial Accounting Standards Board (FASB), the body responsible for issuing accounti ng standards in the unite 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 existing 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 counts 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 centering, 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 enter prises. The interpretations cover ( parvenuely identified financial reporting issues not specifically guidet with in IFRSs (issues where unsatisfactory or conflicting interpretations 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 approximately Australian companies, financial markets, financial services organisations and professionals who deal and advise in investments, superannuation, insurance, deposit taking and credit. The Aus tralian Securities and Investments Commission Act 2001 requires ASIC to (uphold the law uniformly, effectively and quickly promote confident and informed amour 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 and only(a) 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 particular ly concerned with improving the disclosure of information in the financial reports of companies listed with it on the various stock exchanges end-to-end 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 hit the need to initiate legal proceedings in Court in order to resolve a financial reporting matter.FRP is designed to lead an efficient and cost effective way of dealing 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 level-headed 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 sma ll proprietary companies, family trusts, partnerships, sole traders and wholly owned subsidiaries of Australian reporting entities will commonplacely not be required to prepare general purpose statements in accordance with accounting standards.Following the release of the IASBs film Draft 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 Comment 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 of it 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 m eet 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 assets in a fiduciary capacity for a broad group of outsiders, such as a bank, insurance company, securities broker/dealer, pension (or superannuation) fund, mutual fund or investment bank. The implications are that if an entity is publicly accountable or satisfies a size test thence 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. hold back 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 expect to be accepted by the AASB for 2009 and beyond CASE STUDIES cheek record 1 Legal obligations punish the website of the Australian governments Attorney-Generals Department dealing with the law (www. comlaw. gov. au) and discover 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 concern Guide in the Corporations Act can be name 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 used 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 provision 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 bodily structure and setting up a new company Continuing obligations once the company is set up Company directors, secretaries and shareholders Who can sign company documents Funding 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 hot seat 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 functional 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 true Board Members . Current chairman is David Boymal Members of the AASB and organisations be Stay 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 lineup? 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 stretch out 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, th e 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 liaise 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 news 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 start 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 fo rms, 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 owner 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 instrument of taste 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 agreement The membership of the IASB and which countries the members come from The goals of the IASB 1. Memorandum of sagaciousness On the IASB website, go to somewhat 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. In relation to the Memorandum the IASB website states after(prenominal) their joint meeting in September 2002, the US Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) issued their Norwalk Agreement 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 docket for change. From the Memorandum , the topics for short-term convergence include To be examined by the FASB To be examined by the IASB Fair value option* espousal 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** governance grants Research and development Joint ventures Subsequent events Segment reporting FASB name 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 follow ing, from the Memorandum of Understanding The boards set the following goals for 2008 for convergence topics already on either their active agendas or the seek programmes Topics already on an restless agenda intersection topic Current status 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 response to the Exposure Drafts. 2. Consolidations On agenda currently On agenda no To follow out work aimed at the completed inactive publication yet development of converged standards as a matter of high priority. 3.Fair value standard Completed standard expected On agenda To have issued converged guidance aimed at guidance in the frontmost half of 2006 deliber ations in providing consent in the application of process existing fair value requirements. 1 4. Liabilities and equity On agenda no publication 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 manikin 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 FASB 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 a nd member countries Go to the IASB website and see, About us. hot dog on About IASB and there you will find the information about the Chairman, currently 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 run across 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 quite regularly. See what tips you can find about prospectuses, assuming that you are a prospective investor. 3. Policy statements and regulatory guides issued From ASICs property page, go to Publications and then to Policies. two the policy list and the regulatory guides are accessible here. 4. Whats new See ASICs home page, and Whats New features on the home page.