within its regulatory space because GFS reporting was directly associated with

Within its regulatory space because gfs reporting was

This preview shows page 254 - 256 out of 354 pages.

within its regulatory space, because GFS reporting was directly associated with budgetary ex-ante reporting (AASB 2002a). Fourth, the AASB considered itself to be an accounting standard body with an interdependent relationship with the IASB. GFS reporting and its associated organisation, such as the IMF and the ABS, were viewed outside the regulatory accounting standard setting space. 8.5 COMMUNICATION AND COORDINATION AT THE FRC AND A WINDOW OF OPPORTUNITY The influence of the PEs and their backing by the epistemic community was evident at the FRC level. Interviews suggested that FRC members without a public sector accounting background, including the Chairman, relied heavily on the expertise of the PEs and support for GAAP/FGS harmonisation by the epistemic community. PE A (Interview 18/03/2011), an FRC member, noted that he spent much time in lobbying for GAAP/GFS harmonisation at the FRC. “It took me quite some time to gain the attention of the FRC members, who were all largely private sector. For them, to essentially educate them to what the problem was. So the first job was to say, I have got to get new FRC, my colleagues in the FRC to understand there is a problem. And I recall at the time saying to them, when the Treasurer announces his budget surplus, tell me what you think that number is. I asked them all around the table and everyone said, “Oh it’s the surplus.” And I said, “What sort of surplus?” And then said, oh and then various views, you know. Some people said it was the operating result, some people said it was the cash surplus and I said it was none of those, it’s none of those. Do you know the country is being run against an aggregate that the markets work on, that the capital market’s deeply interested in? That the foreign market is deeply interested in etcetera, because a surplus in macro-economic sense is a very important indicator of cash, you know, of macro-economic activity; very important. And so for a macroeconomic construct that the Treasurer did at the time and still to this day refers to as its key aggregate. And once I had got through to the FRC members that this was not your normal GAAP construct, it
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241 was a macroeconomic construct, then they all started to listen to, there is a problem. There is something that has to give. […] I spent a lot of time with the [FRC] Chair and convinced him of the importance of this. [..] So it was just basically bringing the FRC to a point of understanding of what to do.” Four of 12 FRC members in 2002 had a public sector background. One of these resigned in February 2002. There were also informal nominees who were observing rather than taking action during the meetings. Two of these had a public sector background. Of the members that did not have a public sector background, three agreed to participate in this study. They supported GAAP/GFS harmonisation for both cognitive and normative reasons. At the cognitive level, they stated that they believed that there were issues in public sector financial reporting that could be addressed by the project.
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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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