Appendix G
Report on the operations of the out-going Australian Accounting Standards Board 1 July 1999 to 31 December 1999
1. Establishment, functions and powers
Prior to 1 January 2000, the AASB was a statutory body established by section 224 of the ASIC Act. Its principal functions were to make accounting standards for the purposes of the Corporations Law and to develop a conceptual framework, not having the force of an accounting standard, for the purpose of evaluating proposed accounting standards.
2. Membership and meetings
Appointments were made by the Treasurer on a part-time basis for a term of up to 3 years, with retiring members being eligible for reappointment.
The members of the out-going AASB are listed in Table 1. The old Board held 6 meetings (for a total of 11 meeting days) between July and December, with details of attendance by members listed in Table 2. All meetings were held jointly with the PSASB.
Members of AASB 1 July 1999 to 31 December 1999
The following were members of the out-going AASB from 1 July 1999 - 31 December 1999, when their terms of appointment ended:
Chairman
|
Kenneth H Spencer, FCA |
Company Director,
Melbourne |
Members
|
David G Boymal, BCom, FCA, FCPA |
Partner, Ernst
& Young, Melbourne |
|
Jayne Godfrey, PhD, MEc, Dip Ed, BCom(Hons), FCPA, FCA |
Professor
of the Department of Accounting and Finance, University of Tasmania,
Hobart |
|
Ian L Hammond, BA(Hons), ACA, FCPA |
Partner, PricewaterhouseCoopers,
Sydney |
|
Wayne R Lonergan, BEc, FCA, FSIA, FAICD |
Partner, PricewaterhouseCoopers,
Sydney |
|
Denise P McComish, ACA |
Partner, KPMG,
Perth |
|
Elizabeth J Moran, BAgSc, GradDipAcc, CPA |
Manager Financial
Systems, Finance Management Branch, South Australia Treasury, Adelaide
|
|
Greg Ward, MEc, ACA |
Chief Financial
Officer, Macquarie Bank, Sydney |
|
Chris J Warrell, BCom, DipEd, FCPA |
Consultant,
Melbourne |
Observers
|
John C Hagen |
Partner, Deloitte
Touche Tohmatsu (New Zealand) |
|
Veronique Ingram |
General Manager, Corporate Governance and Accounting Policy Division, Department of the Treasury, Canberra |
Attendance at AASB Meetings 1 July 1999 to 31 December 1999
Six meetings were held during the period 1 July 1999 - 31 December 1999 for a total of 11 meeting days. Attendance is shown below:
|
Members |
Number of days eligible to attend |
Number of days attended |
Apologies |
|
K H Spencer |
11 |
10 |
1 |
|
D G Boymal |
11 |
11 |
0 |
|
J Godfrey |
11 |
7 |
4 |
|
I L Hammond |
11 |
6 |
5 |
|
W R Lonergan |
11 |
11 |
0 |
|
D P McComish |
11 |
5 |
6 |
|
E J Moran |
11 |
10 |
1 |
|
G C Ward |
6 |
5 |
1 |
|
C J Warrell |
11 |
11 |
0 |
3. Standard setting
During the period 1 July 1999 - 31 December 1999 the AASB devoted significant resources to the ongoing program to harmonise Australian accounting standards with standards issued by the IASC. It issued 9 new and revised Accounting Standards, 2 Exposure Drafts and an Accounting Theory Monograph during the period. They are:
AASB Standards - New
AASB 1037A Amendments to Accounting Standard AASB 1037 (issued 7/99)
AASB 1040 Statement of Financial Position (issued 10/99)
AASB Standards - Revised standards issued under the international harmonisation program
AASB 1010 Recoverable Amount of Non-Current Assets (revised (12/99)
AASB 1015 Acquisitions of Assets (revised 10/99)
AASB 1018 Statement of Financial Performance (revised 10/99)
AASB 1020 Income Taxes (revised 12/99)
AASB 1033 Presentation and Disclosure of Financial Instruments (revised 10/99)
AASB 1034 Financial Report Presentation and Disclosures (revised 10/99)
AASB 1041 Revaluation of Non-Current Assets (revised 12/99)
Exposure drafts
ED 99 Impairment of Assets (12/99 - issued in conjunction with the PSASB)
ED 100 Arrangements for the Provision of Public Infrastructure by Other Entities - Disclosure Requirements (12/99 - issued by the PSASB)
Accounting Theory Monographs
ATM 11 Reporting on Solvency and Cash Condition (issued 2000)
4. International harmonisation
In additional to the work on the harmonisation program, the AASB was actively involved with other national accounting standard setters.
The primary group with which the AASB was involved is informally known as the 'G4+1` group of standard-setters, comprising Australia, Canada, New Zealand, the United States of America, and the United Kingdom, with an observer from the IASC. The G4+1 group met twice during the period 1 July 1999 - 31 December 1999.
The following documents were issued by the AASB in conjunction with the G4+1 group of standard setters:
- G4+1 Discussion Paper `Accounting by Recipients for Non-Reciprocal Transfers, Excluding Contributions by Owners: Their Definition, Recognition and Measurement'; and
- G4+1 Invitation to Comment `Leases: Implementation of a New Approach'.
5. Consultation
Consultative group
The AASB received valuable input from its Consultative Group which had the following membership in the period July-December 1999:
|
Accounting Association of Australia and New Zealand |
CPA Australia |
|
Association of Superannuation Funds of Australia |
Finance and Treasury Association |
|
Australian Bankers' Association |
Group of 100 Incorporated |
|
Australian Chamber of Commerce and Industry |
Insurance Council of Australia Limited |
|
Australian Institute of Company Directors |
International Banks and Securities Association of Australia |
|
Australian Property Institute |
Investment & Financial Services Association of Australia Incorporated |
|
Australian Prudential Regulation Authority |
Law Council of Australia |
|
Australian Securities and Investments Commission |
National Institute of Accountants |
|
Australian Shareholders' Association Limited |
The Institute of Actuaries of Australia |
|
Australian Stock Exchange Limited |
The Institute of Chartered Accountants in Australia |
|
Business Council of Australia |
The Securities Institute of Australia |
|
Council of Small Business Organisations of Australia |
The Consultative Group was successful in enabling the old AASB to obtain feedback and constructive input on technical issues, its project priorities, due process and other matters, and keeping members informed about the AASB's work. One meeting was held in October 1999.
Liaison with constituents
In addition to the Consultative Group, the AASB also met with a wide range of people to discuss matters of interest both generally and in relation to specific projects.
The Chairman of the AASB and AARF staff also met with ASX and Group of 100 representatives with regard to the International Harmonisation Program.
Seminars
Members of the AASB and AARF staff presented papers on matters relating to the AASB's work program at a number of seminars, congresses and conferences.
6. Research and administrative support
Research and administrative support for the old AASB was provided by the AARF, under an agreement between the Commonwealth Government and the ICAA and the CPAA. AARF staff attended meetings of the AASB.
As at 31 December 1999, the AARF had 17 research staff and 12 secretarial, publications, information technology and administrative support staff. In addition to time devoted to work of the AASB, staff supported the PSASB, the Auditing and Assurance Standards Board, the Legislation Review Board and the UIG.
The research and administrative support provided to the AASB included:
- original research into relevant accounting topics;
- the provision of advice on matters relating to local and foreign financial reporting developments;
- preparing papers for consideration by members;
- collation and analysis of comments from parties interested in financial reporting, particularly those responding to Exposure Drafts;
- liaison with the professional accounting bodies, the ASIC, the Commonwealth Treasury and foreign national standard-setting organisations;
- making presentations at seminars and conferences on current and emerging issues; and
- a secretariat to carry out the administrative responsibilities of the AASB.
7. Finances
A Parliamentary appropriation administered by the ASIC contributed to meeting the costs of the AASB's operations. Funding of the AARF, by CPA Australia and ICAA and by the sale of publications, also supported the provision of research and administrative services to the AASB
Under the arrangements operating until 31 December 1999, the ASIC paid the Chairman's salary and sitting fees directly to members from the Parliamentary appropriation. Under these arrangements the AASB's other costs were administered by the AARF, which maintained detailed accounting records with respect to member travel and accommodation costs, and the costs of research and administration undertaken by the AARF on behalf of the AASB.
The old AASB was not subject to a legislative requirement to prepare an audited financial report, although it usually prepared an informal unaudited report to provide information about its income and expenditure. In the absence of a legislative requirement for the preparation of a financial report by the old AASB, this report does not include financial information for the period 1 July 1999 to 31 December 1999.