Due Process Failure in Sector-Neutral Accounting Standard-Setting
23 Pages Posted: 10 Aug 2008
Date Written: February 27, 2002
Abstract
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
Keywords: accounting, standard-setting, sector neutral, due process, directors' remuneration, FRS-9
JEL Classification: M40
Suggested Citation: Suggested Citation