Explanatory and regulation impact statements

Introduction

Explanatory statements

In accordance with Parliamentary requirements, an Explanatory Statement is prepared to accompany every standard that is tabled in Parliament.

Regulation impact statements

All proposals undergo a preliminary assessment to establish whether they are likely to involve an impact on business and individuals or the economy. If the preliminary assessment shows that a proposal potentially involves medium compliance costs, an assessment of compliance cost implications is carried out and a regulation impact statement (RIS) is prepared where the impacts include medium or significant compliance costs.

 Where the AASB prepares a RIS for a project, the RIS outlines:

• the need for action
• the primary objectives
• alternative approaches to achieving the objective, usually examining a number of options
• a cost/benefit analysis of each option
• consultation
• a conclusion and recommended option
• likely review and revision

The AASB complies with the “Best Practice Regulation Handbook” (November 2006) issued by the Office of Best Practice Regulation.

At key stages of a project, the Office of Best Practice Regulation provides the AASB with comment on its regulatory impact analysis and, where required, developing a RIS.

Explanatory statements

Regulation impact statements