Overview
The Accounting Standards Board (ASB), the UK’s former behemoth in accounting rule-making, emerged from the bureaucratic cocoon of the Accounting Standards Committee in 1990, ready to spread its detailed ledgers and balance the books of British business. Initiated by the recommendations in the intellectually rich Dearing Report, the ASB embarked on a thrilling odyssey (think accountants in capes, if that helps) of publishing Financial Reporting Standards.
The Work of ASB
Under the banner of ASB, the financial landscape of the UK was not just governed; it was sculpted like Michelangelo did with marble—meticulously and with a flourish of drafts (these were dubbed the Financial Reporting Exposure Drafts or FREDs). Not all heroes wear capes; some just issue really detailed financial directives.
Financial Reporting Standards
These were the commandments from the ASB’s Mount Olympus, offering the golden rules businesses had to abide by in preparing their financial statements.
Financial Reporting Exposure Drafts (FREDs)
Before a financial standard could claim its place in the cosmic accounting constellation, it was a mere mortal draft known as a FRED. These drafts were the embryonic stages of potentially supreme accounting scriptures.
Urgent Issues Task Force Abstracts
The ASB also gave birth to another entity, almost like its squad of minutemen, the Urgent Issues Task Force, which dealt with unexpected accounting anomalies (or ‘accountnanomalies’ if you will). They released reports known as Abstracts, addressing the urgent and often mystifying issues in the financial reporting arena.
Transition and Legacy
In the dramatic twist of fate worthy of a Dickens novel (but with more ledger entries and fewer impoverished orphans), the ASB met its organizational demise in 2012. Its legacy and ledger-passing responsibilities were taken over by the Financial Reporting Council and a fresh knight in shining armor, the Accounting Council.
Related Terms
- Accounting Standards Committee: The predecessor of ASB, served as the UK’s accounting standard-bearer before 1990.
- Financial Reporting Council: The current UK body responsible for overseeing the accounting standards.
- Dearing Report: A significant report which led to the restructuring of accounting regulatory bodies in the UK.
- Accounting Council: The new entity supposed to uphold the ASB’s torch in upholding quality in financial reporting.
Recommended Reading
For those who desire to delve deeper into the mesmerizing world of accounting regulations and want the full scoop on how ASB shaped financial reporting, consider the following books:
- “Financial Reporting and Accounting Standards” - offers comprehensive insights into the evolution of accounting standards.
- “The Dearing Report and Its Outcomes” - a thrilling read on how the Dearing Report transformed UK financial reporting.
In conclusion, while the ASB no longer stamps its authoritative seal across financial documents, its spirit (and its standards) linger in the corridors of British businesses, whispering the sacred truths of depreciation and amortization into the ears of willing accountants.
