Finance Leasing Manual - FLM48.04

Status of Standards adopted or issued by ASB

Standards adopted (SSAPs) or issued by the ASB have the status of 'accounting standards' within the terms of Part VII of the Companies Act 1985 (as amended). Under Part VII directors of companies are under a statutory duty to disclose in all accounts whether the accounts have been prepared in accordance with applicable accounting standards, particulars of any material departure from those standards and the reasons for the departure. Under Section 245B of the Companies Act 1985 the court can step in to order the preparation of new accounts to replace defective accounts.