The ASB's technical activities include the development and review of accounting standards and the issue of UITF Abstracts. These are developed having regard to the ASB's Statement of Principles.
The ASB consults widely in the course of developing an accounting standard. For a new standard, at least two formal consultation documents are published. The first is a Discussion Paper, which sets out the issues and, if appropriate, proposed solutions. This is followed by an exposure draft, designated a 'Financial Reporting Exposure Draft' (FRED), which sets out the text of the proposed standard.
The ASB also issues ASB statements, which, unlike accounting standards and UITF Abstracts, do not impose mandatory accounting requirements. These include statements that provide guidance on subjects such as the operating and financial review, interim reports and preliminary announcements.
Small companies (and other entities) are able, if they wish, to observe the requirements of the FRSSE (Financial Reporting Standard for Smaller Entities) as an alternative to compliance with all the other accounting standards and UITF Abstracts.
The ASB's technical activities also include the review of SORPs, which are recommendations on accounting practices for specialised sectors that are developed by other bodies in accordance with ASB policy.
