The Accounting Council which replaces the Accounting Standards Board, and reports into the Codes and Standards Comittee is responsible for:
Providing strategic input and thought leadership, both in the field of accounting and financial reporting and in the work-plan of the FRC as a whole. This will involve "horizon-scanning" and consulting with practitioners or users;
Considering and advising the FRC Board upon draft codes and standards (or amendments thereto) to ensure that a high quality, effective and proportionate approach is taken;
Considering and commending upon proposed developments in relation to international codes and standards and regulations; and
Considering and advising on reasearch proposals and other initiatives undertaken to inform the FRC on matters material to its remit and any resultant publications.
The Council comprises of up to twelve members, at least half of which are practising members of the relevant profession and the remainder will be other stakeholders. Members of the Councils are appointed through an open process overseen by the Chair of the Codes and Standards Committee (CSC) subject to the overall guidance of the Nominations Committee of the FRC.
The Financial Reporting Council assumed responsibility for accounting standards on 2 July 2012. Accounting standards were formerly developed by the Accounting Standards Board 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 Whilst some of the SSAPs have been superseded by FRSs, some remain in force.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 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.
One of the ASB's objectives was 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 could issue accounting standards on its own authority, without the approval of any other body. The ASB's policy was 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).