Short Answer Question 1 - Regulatory Framework

(Answer length - approximately 100-150 words)

Since January 2005, Australia has adopted the accounting standards issued by the International Accounting Standard Board (IASB). As a result, the role of the Australian Accounting Standards Board has significantly reduced. There are discussions in the Australian parliament that the AASB should be removed and Australian companies should simply follow the international standards rather than the converted standards that AASB has been issuing.

Required:

Given the current role of the AASB, you think that the AASB should not be removed, and should continue to issue converted standards for Australian companies. Provide two justifications to support your answer. (5 Marks)