Achieving High Quality, Comparable Financial Reporting: A Review of Independent Enforcement Bodies in Australia and the United Kingdom.

This article provides a review of the activities of two quite different types of national enforcement body, the U.K.'s Financial Reporting Review Panel (FRRP) and the Australian Securities and Investments Commission (ASIC). We present material (some not available elsewhere) about their activities ov...

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Publicado en:Abacus Vol. 43; no. 4; pp. 438 - 474
Autores principales: BROWN, PHILIP, TARCA, ANN
Formato: Artículo
Publicado: Wiley-Blackwell Dec2007
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Acceso en línea:Ver este registro en EBSCOhost
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          BROWN, PHILIP
          TARCA, ANN
        affil:
          University of New South Wales and an Emeritus Professor at the University of Western Australia
          University of Western Australia
      su:
        Accounting
        Investments
        Securities trading
        Compliance auditing
        Accounting standards
        Australian Securities & Investments Commission
        Great Britain. Financial Reporting Review Panel
        United Kingdom
        Australia
      sug:
        subj:
          United Kingdom
          Australia
          Accounting
          Investments
          Securities trading
          Compliance auditing
          Accounting standards
          Australian Securities & Investments Commission
          Great Britain. Financial Reporting Review Panel
      ab: This article provides a review of the activities of two quite different types of national enforcement body, the U.K.'s Financial Reporting Review Panel (FRRP) and the Australian Securities and Investments Commission (ASIC). We present material (some not available elsewhere) about their activities over the period 1998–2004 and show that both types of body can fulfil an enforcement role, albeit subject to political forces. We also assess the relevance of the bodies’ past activities for comparable international enforcement following the adoption of International Financial Reporting Standards (IFRS) in 2005. A review of cases reveals that for both bodies approximately half were related to recognition and measurement issues, where interpretation can be crucial. Although there is potential for cross-country differences to arise, they may be mitigated by the participation of both bodies in international enforcement coordination activities. Past activities suggest that the scope of the bodies’ activities and the extent of comparability of enforcement decisions are likely to reflect political views held within the government, corporate sector and accounting profession.
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