- Title
- The saga of a disallowed accounting standard
- Creator
- Groen, Bert; Lanis, Roman
- Relation
- Australian Accounting Review Vol. 14, Issue 3, p. 56-63
- Relation
- http://www.cpaaustralia.com.au/cps/rde/xchg/SID-3F57FECA-6A910BBF/cpa/hs.xsl/1708_ENA_HTML.htm
- Publisher
- CPA Australia
- Resource Type
- journal article
- Date
- 2004
- Description
- In 2000, the Australian Senate disallowed 2 paragraphs of the accounting standard AASB 1015, Acquisition of Assets, an unprecedented action that sent shockwaves through the business community. As a consequence, a legal dispute erupted between the Australian Securities and Investments Commission (ASIC) and MYOB Ltd. in relation to the application of the disallowed paragraphs, culminating in a recent decision in the Victorian Supreme Court. MYOB acted in accordance with the law through its early adoption of the 2 paragraphs in AASB 1015 and valuation of its first-acquired assets at their book and continues to comply with the law by its use of the book-value method to account for the April 1, 1999, reconstruction in the financial statements for periods subsequent to December 31, 1999. The implications for accounting standard-setting in Australia and the process by which an accounting standard is made by the AASB and may be disallowed in whole or in part by parliament are discussed.
- Subject
- asset acquisitions; book value; court decisions; policy making; software industry; accounting standards
- Identifier
- uon:1812
- Identifier
- http://hdl.handle.net/1959.13/27578
- Identifier
- ISSN:1035-6908
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