Once upon a time, in the mystical land of finance, there existed a group of hidden superheroes—a council so powerful, yet so covert, they maintained the accounting order in the universe. This elite group? None other than the Accounting Council.
The Origin Story 🌟
Formed in the year 2012, the Accounting Council descended from the grandiose lineage of the Accounting Standards Board (ASB). Much like a financial phoenix rising from the ashes, it was established to take over many of ASB’s pivotal functions, while sporting a shinier cape and much more streamlined Excel sheets.
The Mighty Responsibilities ⚖️
Imagine handling the sacred scriptures of accounting! The Accounting Council’s main mission is to advise its benevolent overlord, the Financial Reporting Council (FRC)—the Zeus in the financial living room. They clasp the Herculean task of ensuring the clarity and robustness of our accounting Greek temples (policies).
flowchart TD
ASB[Accounting Standards Board] --> AC[Accounting Council]
AC -->|Advises| FRC[Financial Reporting Council]
FRC --> FRS[Financial Reporting Standards]
AC -->|Contributes to Development| FRS
The Hand That Holds the Pen 🖋️
Although the regal robes of issuing Financial Reporting Standards (FRS) now belong to the FRC, our gallant Accounting Council still plays the role of a literary critique, advising on every ink stroke and decimal point.
And Here Lies the Quiz 🧩
Time to open up those cerebrums and flex those neurons! Here’s a fun quiz to transform your gray matter into sheer golden wisdom.
Quiz Questions
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What year was the Accounting Council established?
- A. 2010
- B. 2012
- C. 2008
- D. 2015
- Answer: 2012. Explanation: In 2012, the Accounting Council was born to take over functions of the ASB.
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What is the main role of the Accounting Council?
- A. To issue Financial Reporting Standards
- B. To advise the FRC on accounting policies
- C. To audit financial statements
- D. To organize accounting conferences
- Answer: To advise the FRC on accounting policies. Explanation: The Accounting Council’s primary role is to advise its parent body, the FRC, on matters of accounting and financial reporting policy.
-
Who is the parent body of the Accounting Council?
- A. The London Stock Exchange
- B. The Financial Reporting Council
- C. The Securities Exchange Commission
- D. The Accounting Standards Board
- Answer: The Financial Reporting Council. Explanation: The FRC oversees the Accounting Council, much like Batman oversees Robin’s crime-fighting activities.
-
Whose main responsibility is the issuance of Financial Reporting Standards now?
- A. Financial Reporting Council (FRC)
- B. Accounting Council
- C. Securities Exchange Commission
- D. Accounting Standards Board
- Answer: Financial Reporting Council (FRC). Explanation: The task of issuing Financial Reporting Standards now lies with the FRC, though the Accounting Council plays an advisory role.
-
Which organization did the functions of the Accounting Council originally belong to?
- A. Financial Reporting Council
- B. Accounting Standards Board
- C. International Accounting Standards Board
- D. Public Company Accounting Oversight Board
- Answer: Accounting Standards Board. Explanation: The Accounting Council was established to take over certain functions from the former Accounting Standards Board.
-
What does FRC stand for?
- A. Financial Regulation Commission
- B. Financial Reporting Council
- C. Fiscal Reporting Center
- D. Financial Review Community
- Answer: Financial Reporting Council. Explanation: FRC stands for the Financial Reporting Council which is the parent organization of the Accounting Council.
-
True or False: The Accounting Council has the final say in issuing Financial Reporting Standards.
- A. True
- B. False
- Answer: False. Explanation: The Accounting Council advises on the standards, but the issuance is the responsibility of the FRC.
-
In which year did the Accounting Standards Board become defunct?
- A. 2010
- B. 2012
- C. 2005
- D. 2019
- Answer: 2012. Explanation: In 2012, the Accounting Council took over certain functions, leading to the dismantling of the ASB.
