About the ASB

The role of the Accounting Standards Board (ASB) is to issue accounting standards.
It is recognised for that purpose under the Companies Act 1985. It took over the task
of setting accounting standards from the Accounting Standards Committee (ASC) in
1990.

The ASB also collaborates with accounting standard-setters from other countries and
the International Accounting Standards Board (IASB) both in order to influence the
development of international standards and in order to ensure that its standards are
developed with due regard to international developments.

The ASB has up to ten Board members, of whom two (the Chairman and the
Technical Director) are full-time, and the remainder, who represent a variety of
interests, are part-time (see membership of Board). ASB meetings are also attended
by three observers. Under the ASB's constitution, votes of seven Board members
(six when there are fewer than ten members) are required for any decision to adopt,
revise or withdraw an accounting standard. Board members are appointed by a
Nominations Committee comprising the chairman and fellow directors of the
Financial Reporting Council (FRC).

The Accounting Standards Board is autonomous in its role in issuing standards. It is,
however, the practice of the Board to consult widely on all its proposals.

Further details of the ASB's role as an operating body of the FRC are given in the
Regulatory Strategy.

Accounting standards developed by the ASB are contained in 'Financial Reporting

Standards' (FRSs). Soon after it started its activities, the ASB adopted the standards
issued by the ASC, so that they also fall within the legal definition of accounting
standards. These are designated 'Statements of Standard Accounting Practice'
(SSAPs). Whilst some of the SSAPs have been superseded by FRSs, some remain
in force.

Accounting standards apply to all companies, and other kinds of entities that prepare
accounts that are intended to provide a true and fair view. The Foreword to
Accounting Standards explains the authority, scope and application of accounting
standards.

The ASB's objectives are set out in the ASB's Statement of Aims. One of these is to
develop principles to guide it in establishing accounting standards. These are
contained in the ASB's Statement of Principles for Financial Reporting. Unlike its
predecessor body, the ASC, the ASB can issue accounting standards on its own
authority, without the approval of any other body. The ASB's policy is to consult
widely on all its proposals. Generally the development of a new accounting standard
involves at least two formal consultation documents, a Discussion Paper and a
Financial Reporting Exposure Draft (FRED). Further details of these is given in the
Technical Activities section of this site.
The ASB has a communication strategy that sets out the Board's objectives in using
communications for influencing international developments and dialogue with its
constituents.

For a full list of ASB publications go to Publications.

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