Despite the caution expressed in the last two paragraphs of the FRC September

Despite the caution expressed in the last two

This preview shows page 259 - 261 out of 354 pages.

Despite the caution expressed in the last two paragraphs of the FRC September minutes, at the following meeting in December 2002, the FRC approved the strategic direction for GAAP/GFS harmonisation. Between the two meetings, there were a number of important events. The FRC Chairman stated at an SELC meeting on 13 February 2003: “Then in October I attended overseas meetings. In particul ar, I attended the UK Treasury and discussed with them in detail what their views were regarding public sector accounting. They advised that, as far as they were concerned, they would never adopt IFAC PSC accounting within the UK. We also met with the UK Department of Industry. We also met formally with Ian McIntosh and the IMF to again discuss what in their view were the issues that Australia needed to have proper regard to in respect of public sector accounting. At that stage, the feedback that I found concerning was that there were two strongly polarised views. There seemed to be no middle ground. The views were either that IMF- GFS that is - was absolutely the way to go for all these reasons or, alternatively, that GAAP was the way to go, similarly for very strong reasons. At that stage there appeared to be no middle ground. What was also of concern to me and the FRC was that, if we have a look at the manner in which private sector standards are issued, there was a very robust process by which standards are contemplated and ultimately delivered by the IASB, including, for example, Australia’s role as a regional standard setter. No such process exists for either the IFAC PSC or the IMF. Again, that caused us some concern. Again, we were unsure as to why there was not a greater level of dialogue between the two. As the chairman pointed out last night, the IFAC PSC is not an independent board. It is appointed by the accounting profession around the world. It is not appointed in the same robust manner as the International Accounting Standards Board is. We had and have some reservations about the processes under which the IFAC PSC determined its process and released standards.” (SELC 2003, E 179) In October 2002, HoTs officially endorsed GAAP/GFS harmonisation and wrote a letter to the Chair of the FRC conveying their support. The BEFR was finalised in October 2002. It also recommended GAAP/GFS harmonisation. On 5 December 2002, the Chair of the JCPAA wrote a letter to the FRC to express the support of political actors of the Commonwealth government for harmonisation. The FRC Chairman remembered at the aforementioned hearing:
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246 “At that stage, we had as part of our papers a letter dated 5 December by the Chairman of the Joint Committee of Public Accounts and Audit addressed to me as chairman, stating: As the government has set a date of 2005 for Australia’s adoption of international accounting standards, the committee believes that harmonisation of the AAS and GFS should take place no later than that date.
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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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