There was also evidence that the Budget Estimates and Framework Review was

There was also evidence that the budget estimates and

This preview shows page 272 - 274 out of 354 pages.

There was also evidence that the Budget Estimates and Framework Review was initiated by a PE as part of the lobbying process in 2002. This review included a recommendation for GAAP/GFS harmonisation. As the review is not publicly accessible, no evidence was available about which issues were associated with GAAP/GFS harmonisation at this time. The events demonstrate that the policy solution of GAAP/GFS harmonisation was not the result of a well-thought through assessment of the costs and benefits and a well- defined set of problems. Instead, the process shows evidence of the satisficing behaviour of the PEs as assumed by the DASF. The PEs came up with a solution to some anticipated problems. As part of the agenda setting process, they associated a number of existing, previously separately discussed problems to the policy idea and added them at the ‘last minute’. Coordination and communication The thesis argued that the PEs originally focused their lobbying activity on the PSASB which was aware of the two reporting regimes, but saw them as serving different purposes. By 2000, the CLERP reforms were implemented and the PSASB was incorporated into the newly formed AASB. The thesis showed that Treasury increased its influence on accounting standard setters with the establishment of the FRC as the AASB’s oversight body. Public sector board members and constituents felt that the AASB did not make sufficient progress on public sector issues. One potential reason for this was the imminent adoption of international financial reporting standards. While
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259 GAAP/GFS harmonisation was officially a high- priority project, the Board’s actions suggested otherwise. It kept deferring the issue. By approximately 2002, the PEs became increasingly aware of the likelihood that the AASB was tending towards a negative decision about the development of a GAAP/GFS harmonised accounting standard. This prompted the PEs to move their focus to the FRC. The AASB finalised its decision not to pursue GAAP/GFS harmonisation at its December 2002 meeting. One of the reasons was that the AASB did not see itself as an ‘ex - ante’ budget accounting standard setter. During 2002, when the PEs realised that the AASB might not address the project to their satisfaction, they increased their lobbying activities at the policy and political level. Using a coordinated and communicative process, the PEs created an epistemic community, which was united in a belief that the GAAP microeconomic objectives and the GFS macroeconomic objectives could be served by one GAAP/GFS harmonised accounting standard. Such a project could also address other issues of public sector accounting. Members of this epistemic community included HoTs, ACAG, federal government departments and parliamentary committees. The coordination included the appointment of PEs to the FRC and the AASB, and bringing GAAP/GFS harmonisation to the attention of relevant individuals and bodies. The communicative aspect included presenting cognitive and normative aspects of GAAP/GFS harmonisation.
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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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