And I think the FRC was because we were seeing this as an improvement in

And i think the frc was because we were seeing this

This preview shows page 256 - 258 out of 354 pages.

And I think the FRC was, because we were seeing this as an improvement in general accountability and more liable accounting, etc., etc. and, therefore, if there was a political level of support that had to be a good thing for Australasian citizens.” The last paragraphs show, that the legitimisation by the political actors was also a factor in the decision-making process of FRC members. By mid-2002, the PEs had successfully coupled the three streams of problems, policy and politics. At the same time, it became more obvious that the AASB would not pursue GAAP/GFS harmonisation to the extent desired by the PEs. Involving the FRC more with the GAAP/GFS harmonisation agenda setting process was a logical step. The first reference to GAAP/GFS harmonisation at the FRC was in its minutes for the FRC June 2002 meeting. It is possible that this timing was triggered by the first FRC strategic direction. An observer (Interview 23/02/2010) of the 2002 FRC meetings recalled the following:
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243 “And they [the FRC] made a resolution a strategic direction for the AASB, that Australia would adopt International Financial Reporting Standards in the same timetable as the European timetable which is what, 2005? Now that, that sparked the imagination of [PE C] and this other guy and at the next meeting, I think without any prior notice again, they dumped the resolution on the table that Australia, that Australia should adopt GFS and the International Accounting Standards but where they are different they should adopt GFS. Now you have to say what they really meant was we ought to adopt GFS. Now there was a bit of shemozzle over that and this was discussed at one of the Senate Estimates Committees at the time. [Someone] objected to it, [saying] the FRC did not have the right to, you know; establish accounting standards which in effect they had done. Anyway they, at the next meeting, […] they modified th e resolution which is the strategic direction you’ve probably seen. […] And [PE C] and […] [PE A], they really took advantage with what they saw at the previous meeting when [the FRC Chairman] and these other guys adopted the international and financial reporting standards. And put up the argument orally and they convinced the board. […] They just took advantage of that situation.” Similarly, one of the PEs (Interview 09/03/2010) remembered: “Ultimately with some wonderful leadership from then Chairman of the FRC, the FRC gave a strategic direction to the AASB which effectively required them to adopt the IASB standards. That having happened, it raised in a number of people’s minds whether there should be a similar strategic direction to give the AASB some strong guidance about the direction in which we wanted to see our public sector accounting standards setting going in Australia.” The minutes for the June 2002 meeting, when the FRC issued the strategic direction for adoption of IFRSs, state: “[Person X] addressed the meeting on a Commonwealth proposal to bring Australian Accounting Standards and Government Finance Statistics together into a single reporting regime for the public sector. It was agreed that a small working
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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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