know other than my understanding is this perception that parliamentarians were

Know other than my understanding is this perception

This preview shows page 313 - 315 out of 354 pages.

know, other than my understanding is this perception that parliamentarians were confused by the fact that there were two sets of accounts out there. Now, I must say that the fact there were two sets of accounts out there, you’ve got to say, well, had UPF adopted GAAP in the first place there wouldn’t ha ve been two sets, the confusion wouldn’t have been there, and everyone would have been happy. We wouldn’t have needed the Direction. So, going right back to what fundamentally caused it, I’d say, who’s in control of the budgeting process in governments? And traditionally that’s been an economist’s role. Who’s responsible for external financial reports, that’s been the accountant’s role. And so inevitably these two are going to clash because budgeting and external reporting are inter- related. And so,
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300 was owned by the bankers, has been owned by the bankers for such a long time. You know, conservative accounting principles and all that are all about saying the lenders don’t want balance sheets that are you know, not reliable and they don’t want the volatility of you know, moving the values in the balance sheet. But of course, that’s where we are heading now, you know, present value and all that sort of thing for a balance sheet... Yeah but and so in the Commonwealth, it's probably one of the few places where the economic accounting construct really hadn’t mattered for a long time and it's kind of been ahead of where industry, you know, where corporate accounting is finally getting to, in my view. Just another piece of the puzzle is a thing called The National Accounts. I mean if you look at the National Accounts and what they are trying to measure, which is what the Australian Bureau Statistics put together. And we used to send our information at the commonwealth level across to them. You know, there is another dimension in all of this and that’s a different accounting construct aga in to corporate Australia. And that was also part of my thing and the fact that we were producing information that they were using and they would use GFS information. […] And be aware of the words statistical and GFS, government financial statistics. The word statistics comes out, is born more out of the Australian Bureau of Statistics who would use statistical means to do national accounting aggregates. Yeah. So as you know they, when they put the national accounts together, they for instance will come to the commonwealth and say, “Can I have your financial statements?” They go to the broader Australian household sector, from you know, the private sector and they don’t get financial statements from everyone in the household sector. But they do statistically estimate what the economic activity has been. So these things called GFS, government financial statistics, they actually built a whole accounting construct, SNA93 I think it was called. System National Accountants.
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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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