consider the commentary in the revised AAS 31 that would effectively

Consider the commentary in the revised aas 31 that

This preview shows page 252 - 255 out of 354 pages.

consider the commentary in the revised AAS 31: “that would effectively acknowledge that the General Government Sector (as defined in Government Finance Statistics) or the Budget Sector of a Government may be a reporting entity that would prepare general purpose financial reports (GPFRs).” (AASB 2002b) At the 22- 23 October 2002 AASB meeting, key individuals E and F “discussed strategic issues relating to the Government Finance Statistics report, the implementation of IASB Standards in Australia and Share-based Payment and Director and Executive Disclosures (AASB 2002c). PE A suggested that key individuals E and F lobbied for the GAAP/GFS harmonisation at this event. The Board also considered the staff paper requested at its August meeting, but decided that more detailed examples of the current reporting by jurisdictions of the GGS were needed to re-examine the issue (AASB 2002c). At its 4-5 December 2002 meeting, the AASB decided that whole of government financial reports should be prepared using GAAP and that any GFS information in the
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239 GAAP rep ort should be given a “lower prominence than the GAAP” report. In addition, the AASB action alert 62 provided the following justification for its decision: “The AASB noted that its current role is to set accounting standards for ex -post general purpose financial reports rather than for budgets, and therefore its discussion focused on ex- post financial reports.” (AASB 2002a) This meant, in essence that GAAP/GFS harmonisation would not be pursued any further. The discussions at the AASB focused on cognitive aspects of potential GAAP/GFS harmonisation. The documents indicate that the project was viewed as a GAAP project and how GFS could be incorporated into GAAP, rather than a harmonisation approach. There was no evidence about detailed considerations of normative issues of the project or a discussion of future constraints. An AASB interviewee (Interview 23/02/2010) noted: “I would have thought there were politically some very good reasons for making the decisions [to issue the FRC strategic direction], it just wasn’t documented.” The data suggested four main reasons for the AASB’s decision not to pursue GAAP/GFS harmonisation at that stage. First, the AASB was busy with other matters. After the first FRC strategic directive in June 2002 about Australia’s adoption of IFRSs for both private and public sector reporting entities by 2005, the AASB was concentrating on these issues. An AASB interviewee (Interview 23/02/2010) remembered: “We probably spent 10% [of AASB time on public sector issues] because we h ad such a back log of other things and you know and that started off with these strategic directions from the FRC.” 62 More detailed issues and justifications of the AASB’s decision can be found in the AASB’s action alert (AASB 2002a).
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240 Second, public sector constituents were still outnumbered 8 to 2 and were arguably not able to significantly influence the AASB’s agenda. An indication of a third, more technical, reason was the notion that the AASB believed that GFS reporting was not
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  • Fall '13
  • Government, The Land, International Financial Reporting Standards, Financial Accounting Standards Board, Australian Accounting Standards Board, Snow

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