well represented that body is to come in and tell it what to do just didnt sit

Well represented that body is to come in and tell it

This preview shows page 208 - 211 out of 354 pages.

well represented that body is, to come in and tell it what to do just didn’t sit well with the Board because the Board itself goes through an exhaustive due process and they just perceive that this demand on them wasn’t appropriate. It just
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195 didn’t go through the proper due process, assessing public interest, truly documenting and understanding user needs, and doing the cost benefit assessment. ” (AASB, Interview 23/02/2010) Because of the increased influence of Treasury, the change in the standard setting arrangements is arguably an important factor in the agenda setting process of GAAP/GFS harmonisation. From a theoretical perspective, the CLERP restructurings can be identified as a ‘critical moment’ or a ‘window of opportunity’, as assumed by the DASF . The approach taken by Treasury conforms with Kingdon’s (2011) suggestion that a change of administration is the most obvious reason for a window of opportunity. In addition, Stoddart (2000) argued that the CLERP proposals were pushed through with very limited public consultation, despite opposition to some policy implications, such as the adoption of IFRSs. IFRS would affect accounting by all reporting entities and significantly reduce the regulatory power of the national standard setting body and the professional bodies. The approach by Treasury through the CLERP events also confirms the DASF’s assumption that key actors coordinate processes. Treasury excluded the public from the change process or did not sufficiently allow and encourage public debate, in order to change the institutional arrangements to increase its influence on public sector accounting standard setting. 7.3 THE IDEA OF ‘GAAP/GFS HARMONISATION’ At some point, between 1998 and June 2000, the idea of ‘GAAP/GFS harmonisation’ had emerged as a term and policy solution. Two individuals were directly involved and charged with setting up the first accrual budget for the 1999/2000 financial year for the Federal government. They are identified as PEs in Chapter 8. To avoid confusion through different labelling, they are, therefore, from here onwards referred
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196 to as PE A (at the time working in Finance) and PE B (at the time working at Treasury). Interviewees pointed out that issues with the dual reporting regime were most prominent at the federal level. It was here, where different treatments by GAAP and GFS were most prominent, due to the specific nature of certain items. Examples included: Defence weapon platforms (capitalised under GAAP and expensed under GFS); Valuation of inventory (including defence inventory; lower of cost or net realisable value under GAAP, current replacement value under GFS); Foreign exchange gains and losses (classified as revenue or expense under GAAP, but ‘other economic flow’ under GFS); International Development Association (IDA)/Asian Development Fund (ADF) Subscriptions (expense under GAAP, IMF notes treatment in some countries as assets); and Distributions payable to owners (reduction in retained surpluses or returns of
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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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