The Asian-Oceanian Standard-Setters Group (AOSSG) will seek to better communicate with the IASB and other bodies of the IFRS Foundation to enable the IASB to prioritize its strategic initiatives with better understanding of issues in the region. This was stated in a vision paper published by the AOSSG titled “A Vision Paper of the Asian-Oceanian Standard-Setters Group 2011 – A Driving Wind for IFRS from Asia-Oceania.” The paper describes activities of the AOSSG to date and future activities for the medium- and long-term.
“In light of the growing economic significance of the region and the number of jurisdictions applying or moving towards application of IFRS, it is vital for us to strive to take a greater responsibility for, and to play a larger role in, the global accounting standard setting process," says Ikuo Nishikawa, chairman of AOSSG.
Over recent years, the size of the economy and capital markets in the region has grown significantly, and convergence with or application of the International Financial Reporting Standards (IFRSs) have steadily progressed. With such surroundings, many stakeholders have suggested that national standards setters in the region have more roles to play. The paper sets out a number of initiatives that the AOSSG may consider in its future activities, whether as immediate initiatives or as a part of a longer term vision. The AOSSG believes that consideration of these initiatives is conducive to the success of the group, which it believes is germane to the success of the IFRSs.
As stated in the paper, the AOSSG may consider how best to expand and allocate its resources with a view towards being seen as a flag-bearer of global standard settings.
Kevin Stevenson, vice-chair of AOSSG says that successful transition to IFRS in the region is of critical importance to the reform of global accounting standards.
"The following are selected ideas regarding how we look to the future," says Nishikawa.
- The AOSSG will devote more resources for capacity building of its members, while enhancing its membership to better reflect regional views;
- The AOSSG will continue to increase communication with the IASB and other bodies of the IFRS Foundation both in terms of technical and strategic agendas; and
- The AOSSG will promote stakeholder engagements to increase the awareness of the group.
Vision towards the future:
- For its effective operation, the AOSSG will seek to bring together members’ knowledge and experience across the region in a more coordinated manner, taking into account effective use of the IFRS Foundation’s liaison office;
- The AOSSG may assist its members to promote consistent application of standards and identify common issues so as to refer them to the IASB and/or Interpretations Committee;
- The AOSSG may assist the IASB in undertaking its post-implementation review, field-visits, and effect analysis by utilising the resources and experiences of member jurisdictions;
- The AOSSG may consider advising its members on significant issues for consideration before and after standards are published;
- The AOSSG may consider strengthening its secretariat’s function, which would be facilitated by ensuring the continuity of secretariat roles; and
- The AOSSG may consider expanding its role to accounting standards for non-profit and public sector entities, while acknowledging the inherent challenges.
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