What is more important: Interpretations or Standards? What takes precedence? Our CaseWare Financials content expert, Carmen Ridley explains.
Entities who are required to comply with Accounting Standards are often unsure about whether this means they are also required to comply with Accounting Interpretations.
AASB 1048 Interpretation of Standards‘s sole purpose is to provide the same authority to Accounting Interpretations as Accounting Standards. This is achieved through naming each of the interpretations within AASB 1048. To comply with AASB 1048, compliance with each accounting interpretation is required.
Note that many of the Accounting Interpretations have narrow scopes and therefore their application is often limited, but they can provide significant guidance for certain transactions. Preparers and auditors should be aware of the content and scope of them and apply them when relevant.
For more information or advice, contact Carmen Ridley directly via firstname.lastname@example.org.
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