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Due Process Failure in Sector‐neutral Accounting Standard‐setting
Author(s) -
Baskerville Rachel F.,
Pont Newby Sonja
Publication year - 2002
Publication title -
financial accountability and management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.661
H-Index - 44
eISSN - 1468-0408
pISSN - 0267-4424
DOI - 10.1111/1468-0408.00143
Subject(s) - remuneration , accounting , business , opposition (politics) , process (computing) , financial sector , finance , political science , law , computer science , operating system , politics
This study of due process in New Zealand draws upon information concerning events from 1993 to 1996 that resulted in the revision of a newly approved financial reporting standard and the withdrawal of requirements for the disclosure of director remuneration. Traditional consultation processes preceding approval of the standard failed to provide the FRSB with an adequate signal of the opposition to come, indicating a failure of due process. Analysis of this case study suggests adoption of a single and sector‐neutral Board in New Zealand was undertaken with a poor appreciation of how to manage effective due process in a ‘sector‐neutral’ world.