Before the CLERP changes there was a separate Public Sector Accounting

Before the clerp changes there was a separate public

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influence over public sector accounting standard setting in Australia. Before the CLERP changes, there was a separate Public Sector Accounting Standards Board (PSASB) that coexisted with the AASB. The PSASB was established to consider public sector and non-profit specific accounting issues. Members were appointed by the Institute of Chartered Accountants in Australia (ICAA) and the predecessor of CPA Australia, the Australian Society of Certified Practicing Accountants (ASCPA). Technical staff of the AARF provided secretarial support for the PSASB, the AASB and the Urgent Issues Group (UIG). The arrangements are portrayed in Figure 7.4.
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191 Figure 7.4: Accounting Standards Arrangement pre CLERP Restructures (adapted from Treasury 1997, p. 75) Treasurer Makes appointments to the AASB in consultation with interest groups Accounting Bodies ICAA ASCPA AASB Established under the ASC Act. Responsible for issuing accounting standards for entities subject to the Corporations Law. Currently the AASB comprises 10 part-time members Joint Standing Committee Comprises the executive committee of each of the ICAA and ASCPA. Australian Accounting Research Foundation (AARF) Provides research, technical and secretarial support to the AASB and the PSASB. Members of AARF are appointed by the Joint Standing Committee. Responsible to the Joint Standing Committee. Comprises 5 Boards: Foundation Board of Management (FBM) Auditing Standards Board (AuSB) Public Sector Accounting Standards Board (PSASB) Develops Statements of Accounting Standards for the public sector and non-companies jointly with the AASB. Comprises 9 members: 4 nominated by each of the accounting bodies, and the Australian representative on the International Public Sector Committee. Members are appointed for 3 years. Legislation Review Board (LRB) Urgent Issues Board (UIG) Before CLERP, Treasury and other public sector accounting constituents had limited influence over the PSASB and its agenda. They could not appoint its members and there was no provision for, or equivalent to, a strategic direction. The PSASB had to compete for staff resources with the AASB. The PSASB was an ‘independent body’ and was able to decide which projects it would consider. It had considerable control over its formal agenda, except when AASB projects dictated the projects that the PSASB had to consider from a public sector perspective. This affected the workload
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192 of the PSASB to a considerable extent. Data from interviews and documents indicate that there was a perception that the technical staff spent disproportionately more time on private than on public sector issues. Key public sector constituents expressed discontent with the PSASB. An example of the alleged shortcomings of the PSASB was noted by PE C: “… The old Public Sector Accounting Standards Board was issu ing standards which were basically irrelevant and largely ignored and all the public debate was around reports that didn’t comply with any official Australian accounting standard. Now there was a kind of standard for these GFS-based reports but it had been established by the Treasuries themselves. This was the UPF. Because
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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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