This page describes the former structure of the FRC. Work on accounting and reporting policy
is now carried out by the Accounting Council
About the ASB
The role of the Accounting Standards Board (ASB) was to issue accounting standards. It was 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 collaborated 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 were developed with due regard to international developments.
The ASB had up to ten Board members, of whom two (the Chairman and the Technical Director) were full-time, and the remainder, who represent a variety of interests, were part-time (see membership of Board). ASB meetings were also attended by three observers. Under the ASB's constitution, votes of seven Board members (six when there were fewer than ten members) were required for any decision to adopt, revise or withdraw an accounting standard. Board members were appointed by a Nominations Committee comprising the chairman and fellow directors of the Financial Reporting Council (FRC).
The Accounting Standards Board was autonomous in its role in issuing standards. It was, however, the practice of the Board to consult widely on all its proposals.
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 Whilst some of the SSAPs have been superseded by FRSs, some remain in force.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.