We were aware of concerns about there being two different reporting models and

We were aware of concerns about there being two

This preview shows page 201 - 203 out of 354 pages.

We were aware of concerns about there being two different reporting models, and the potential for confusion that exists as a result of that. The need where possible to avoid exacerbating the potential for confusion. So that was sort of, but it was not done with any expectation that we would be developing a standard that would, if complied with, harmonise GFS and GAAP.” Whilst there was a dialogue between the PSASB, HoTs and the ABS, there is no evidence that there was any intention by the PSASB to harmonise GAAP with GFS accounting. From a PSASB perspective, the purpose of GA AP was to “enhance the allocation of resources, so that means to provide quality information to enable the decision makers to allocate the resources best in terms of achieving outputs, outcomes, which are service delivery by and large”, while the purpose o f GFS data was “socio - economic policy making” (PSASB, Interview 12/12/2011). The PSASB was aware of the dual reporting regime but the relationship between these two frameworks was not seen as an issue that needed action. In addition, the interviews with PSASB board members and AARF technical staff suggest that GFS was not viewed as being within the PSASB’s regulatory space (Hancher and Moran 1989), but rather as the responsibility of the ABS and the IMF.
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188 The first time written evidence of the term ‘GAAP/GFS harmonisation’ (or ‘GPFR/GFS harmonisation’ 53 as it was referred to then) was in an AASB agenda paper (AASB 2000a) from June 2000, in which it is suggested that the topic was put onto the AASB agenda by the PSASB and referred to a first event in October 1999. As these events occurred after the idea of GAAP/GFS harmonisation had been identified, they are presented in more detail in Chapter 8. Discussion of GAAP and GFS related issues outside the governmental and accounting standard setting agendas before 1999 Two main documents (Challen and Jeffery 2003; HoTARAC 2003) that were published by promoters of the GAAP/GFS harmonisation program after the FRC strategic direction in 2002 suggested that the absence of an audit of GFS data was an issue. Challen and Jeffrey argued that this was a problem because: users have no independent verification of the reliability of the key outcome information that is provided, while there is limited incentive for governments to improve the quality of the information contained in the budget statements .” (Challen and Jeffery 2003, p. 51) The analysis of documents suggests that this was an issue promoted by ABS staff from around 1998. In a meeting in June 1998, ABS staff members gave a presentation to the Australasian Council of Auditor Generals (ACAG) about the feasibility of auditing GFS budgets and the similarities and differences of GFS, under the premise that: “The World Bank wishes to see comparability between National Government financial reports. That is influencing the Australian Bureau of Statistics in its developing the format of the National Accounts. That, in turn, will affect the reporting requirements imposed on National and State Treasuries. It will be
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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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