Comments - Financial Reporting Council: The Use of a Sector Neutral Framework for the Making of Australian Accounting Standards
Matters for consideration
The FRC is seeking public comment on the following matters related to standard-setting, especially in relation to the public sector and the other not-for-profit sector. Respondents are particularly requested to provide the reasons for their views, whether supportive or critical of the identified issues. The matters on which the FRC is seeking comment, which are reproduced in Part 8 of Mr Simpkins’ report, are:
- In your view, how well are the needs of all users of general purpose financial reports, including users of public sector and other not-for-profit entities in Australia, being met?
- Will the current approach of the AASB enable the standard-setter to respond to the more challenging environment of the future and ensure the needs of public sector and other not-for-profit users are appropriately met?
- Do you consider that having a conceptual framework that is applicable and appropriate to all entities is a necessary element in Australian standard-setting for all sectors? What approach to establishing a conceptual framework(s) do you consider appropriate?
- Different approaches could be used to set standards in Australia. Which approach do you consider the most appropriate:
- to continue to develop a single set of standards;
- to develop two separate sets of standards: one for profit-oriented entities and the other for not-for-profit entities; or
- another approach e.g. three sets of standards (profit-oriented, public sector not-for-profit and other not-for-profit sets) or two sets of standards with other not-for-profit entities being addressed together with profit-oriented entities? (If you prefer this option please describe the approach you prefer)
- If, in response to Consultation Issue 4, you considered standards different from those applying to the for-profit sector should be developed for one or more sectors please indicate, for each such sector, what the primary base should be for those standards:
- Government Finance Statistics (GFS);
- International Public Sector Accounting Standards (IPSAS); or
- a range of sources, including International Financial Reporting Standards, IPSAS and GFS, depending on the particular issue being considered?
- If a single set of standards continues to be developed in Australia, do you prefer:
- the current approach of the AASB;
- a matrix approach, retaining specific standards for types of public sector and possibly also other not-for-profit entities while maintaining a general set of topic based standards applicable to all entities; or
- an approach involving a single set of standards but with non-standard level guidance (such as the Statements of Recommended Practice in the United Kingdom) applicable to particular sectors or groups of entities in sectors?
- Would developing a Statement of User Needs for the public sector and other not-for-profit sectors, based on research, and including an analysis of how any different needs impact financial reporting be useful? If so, please suggest how that Statement of User Needs could be developed and maintained. Do you have any other views on how user input could be enhanced?
- Do you consider that there is enough clarity on the direction that the AASB is taking in establishing requirements for the public sector and other not-for-profit sector, including identifying the base set or sets of standards which will be adopted?
- A number of options to enhance the recognition of different environments and issues in sectors have been identified in the Report. Do you consider any of the options, including those relating to board membership, sub-boards or committees, expectations of board members, staffing or explicit board sign-offs would enhance the ability of the standard-setting process to meet user needs?
- Are there any other matters that you would like to suggest for consideration by the FRC?
Invitation to comment
Comments should be addressed to:
Mr Jorge del Busto
Secretary Financial Reporting Council
c/- The Commonwealth Treasury
Langton Crescent
PARKES ACT 2600
or sent by e-mail to jdelbusto@treasury.gov.au by no later than Tuesday 31 October 2006.
It will be assumed that submissions are not confidential and may be made publicly available. If you want your submission, or any part of it, to be treated as ‘confidential’, please indicate this clearly. A request made under the Freedom of Information Act 1982 (Cth) for a submission to be made available will be determined in accordance with the Act.
Comments
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| Accounting Standards Review Board (New Zealand) | 49KB |
| Australasian Council of Auditors General | 53KB |
| Australian Accounting Standards Board | 101KB |
| Australian Not for Profit Network | 49KB |
| Barton, Professor Alan | 2.2MB |
| Buck, William | 1.8MB |
| Department of Defence | 46KB |
| Department of Finance and Administration (Commonwealth) | 120KB |
| Department of Treasury and Finance (South Australia) | 276KB |
| Deloitte | 85KB |
| FinPro | 129KB |
| Group of 100 Incorporated | 73KB |
| Heads of Treasuries Accounting and Reporting Advisory Committee |
651KB |
| International Accounting & Auditing Institute | 83KB |
| National Institute of Accountants | 106KB |
| New Zealand Institute of Chartered Accountants | 121KB |
| PricewaterhouseCoopers | 77KB |
| Professional Accounting Bodies – CPA Australia, ICAA, NIA | 166KB |
| Summers, Iain | 74KB |