Reduced disclosure regime: A look at the impact on Australian public sector

Abstract

In the UK there is the Financial Reporting Standards for Smaller Entities (FRSSE) with discussions occurring around the International Financial Reporting Standards (IFRS) for Small Medium Enterprises (SMEs); in NZ there is the Exempt Company Scheme and the Framework for Differential Reporting; and in Australia there have been various attempts at reducing the complexity of IFRS, including the Australian Accounting Standards Board (AASB) Exposure Draft 192 Revised Differential Reporting Frameworks and now the Reduced Disclosure Regime (RDR). Couched within a modified New Public Management (NPM) / agency theory framework the research investigates the potential benefits of the RDR and whether it adds value for the public sector. This research provides an opportunity to present a unique look at the type of analysis that had it been undertaken by the AASB prior to adoption it may have resulted in a different outcome. One can assume harmonisation has never been on the agenda for the public sector so if IFRS continues to be 'watered down' (or modified) where are the benefits?