Bulletin
2000/6 - 27 September 2000
The Financial Reporting Council (FRC) met on 8 September 2000, its seventh meeting since it first convened in October 1999.
The meeting was attended by the Chairman of the Australian Accounting Standards Board (AASB), Mr Keith Alfredson, who gave a detailed report to the FRC covering, among other things, the activities of the Board and the Urgent Issues Group and meetings with the Board's constituents.
Under the Australian Securities and Investments Commission Act 1989, the FRC's responsibilities include approving the AASB's priorities, business plan, budget and staffing arrangements. The FRC may also give the AASB directions, advice or feedback on matters of general policy and the AASB's procedures.
The FRC meeting advanced a number of issues under these broad headings.
- It approved the AASB's revised draft budget for 2000-01 based on stakeholder commitments totalling $2.9 million and internally generated revenue estimated at $150,000.
- It approved the charter of the Urgent Issues Group (UIG) which has been established as a committee of the AASB. The FRC agreed that appointments to the UIG will be made by the AASB with the approval of the FRC Chairman. It also agreed that the charter and operations of the UIG should be reviewed after a 12 month period.
- The AASB Chairman reported that the AASB had adopted the FRC's recommendation that the approval or making of an accounting standard should formally require the affirmative votes of 7 members (the AASB currently has 10 members). The FRC endorsed the AASB's view that the appropriateness of this majority should be reviewed in the light of experience over the next year.
- The FRC approved the AASB's proposed policy on publications and subscription services, subject to finalisation of discussions on the issue between the AASB, CPA Australia and The Institute of Chartered Accountants in Australia. The AASB will announce this policy when discussions with the main accounting bodies are complete.
As the directors of the AASB, FRC members are responsible for the AASB annual report. The FRC considered a first draft of the 1999-2000 FRC/AASB annual report and agreed on a timetable for completing it by 15 October 2000. The FRC also established an Audit Committee to assist the AASB and its directors to comply with statutory obligations and provide a forum for communication between the directors, senior AASB management, and the AASB's external auditors. The Audit Committee will review the draft AASB annual report and financial statements for 1999-2000.
The FRC also conducted a stock-take of actions it has taken over the period 11 April to 31 August 2000 in meeting its statutory obligation to provide broad oversight of the standard setting process. It agreed to look at further measures designed to enhance its consultation with stakeholders.
The FRC and AASB Chairman also discussed the prospects for Australian appointments to the Technical Standards Board of the International Accounting Standards Committee (IASC). Board positions were recently advertised by the IASC with a closing date of 16 September. The FRC also considered a paper prepared by its secretariat on recent developments in international accounting standard setting.
The FRC is the peak body responsible for the broad oversight of the accounting standard setting process for the private, public and non-profit sectors. It comprises key stakeholders from the business community, the professional accounting bodies, governments and regulatory agencies.
- Key functions of the FRC are to advise the Government on the accounting standard setting process and the development of international accounting standards, and to determine the broad strategic direction of the standard setter, the Australian Accounting Standards Board.
- The legislation formally establishing the new accounting standard setting arrangements came into effect on 1 January 2000.
For further information, please contact the secretariat of the Financial Reporting Council, c/- The Treasury, Parkes Place, Parkes ACT 2600.
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Mr Michael Kooymans |
Mr Les Pascoe |
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Ph: |
(02) 6263 3984 |
Ph: |
(02) 6263 3978 |
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Fax: |
(02) 6263 2770 |
Fax: |
(02) 6263 2770 |
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E-mail: |
E-mail: |
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