The FRC is the peak body responsible for overseeing the effectiveness of the financial reporting framework in Australia.
Its key functions include: the oversight of the accounting and auditing standard setting processes for the public and private sectors; providing strategic advice in relation to the quality of audits conducted by Australian auditors; and advising the Minister on these and related matters to the extent that they affect the financial reporting framework in Australia.
The FRC monitors the development of international accounting and auditing standards, works to promote the development of a single set of accounting and auditing standards for worldwide use and promotes their adoption.
The FRC operates within a framework set out in Part 12 of the ASIC Act.
The ASIC Act sets out core objectives for accounting and auditing standard setting in Australia:
- accounting standards should support the Australian economy by reducing the cost of capital and enabling Australian entities to compete effectively overseas, and should maintain investor confidence in the Australian economy, including its capital markets
- accounting and auditing standards should support the Australian economy by being clearly stated and easy to understand.
The ASIC Act expressly limits the FRC's ability to become involved in the technical deliberations of the AASB and AUASB. In particular, it provides that the FRC does not have power to direct the Boards in relation to the development, or making, of a particular standard, or to veto a standard formulated or recommended by the AASB or AUASB. This provision is designed to ensure the independence of the standard setting boards.
Members of the FRC are appointed on a part-time basis by the Minister, typically for a term of three years.
During 2015–16 six FRC members' terms expired, two members were reappointed and two new members joined the FRC.
The current membership of the FRC is as follows:
Mr Bill Edge
Financial Reporting Council
Bill is a retired partner of PwC, having been a partner for 18 years. For his last eight years he led the PwC Australia Risk and Quality Group, which was responsible for risk management and quality control, including methodologies and technologies, across all of the firm's business units. He served on PwC's Global and Asian Risk and Quality Leadership Teams. He also spent six years leading the PwC Australian Professional Standards Group responsible for the firm's financial reporting and auditing policies and advice. He was also previously Chair of the Australian Auditing and Assurance Standards Board.
Bill was appointed Chair on 29 April 2016 and has been a member of the FRC since July 2014. His term expires on 28 July 2019.
Ms Jackie Callaway
Group Financial Controller
Jackie joined Brambles as Group Financial Controller in April 2014. Prior to this she was the Chief Financial Officer of privately-owned mining company Consolidated Minerals and, before that, worked for UK-listed Nikanor Plc. Jackie was also the Deputy Group Controller at leading New Zealand-based dairy producer, Fonterra, and started her career at two of the big four accounting firms, KPMG and Ernst & Young.
Jackie was appointed to the FRC on 29 April 2016 and her term expires on 28 April 2019.
Ms Judith Downes
Judith is Chair of Bank Australia, the first customer owned bank in Australia. She has previously been a member of the Standards Advisory Council of the IASB and of the Australian Accounting Standards Board. She is an Honorary Fellow at the University of Melbourne. Judith's past experience includes Chief Financial Officer of a listed mining company, non-executive director of a listed property company, and Chief Financial Officer and Chief Operating Officer of the Institutional Division of one of Australia's largest banks.
Judith was appointed to the FRC on 29 April 2016 and her term expires on 28 April 2019.
Dr Stein Helgeby
Department of Finance
Stein joined the Department of Finance in February 2010 as the Deputy Secretary of the former Financial Management Group. In October 2015 Stein was appointed Deputy Secretary of Governance and APS Transformation. Prior to this, Stein enjoyed a lengthy period in the Victorian Department of Treasury and Finance.
Stein was appointed to the FRC from 24 February 2010 to 23 February 2013; reappointed from 24 February 2013 to 23 February 2016; with an extension from 29 April 2016 to 28 April 2019.
Ms Noelle Kelleher
Chief Financial Officer
Noelle has nearly 30 years' experience in the financial services industry, with a particular focus on superannuation. Prior to joining Vision Super, Noelle was a partner at two of the 'Big Four' professional services firms. Noelle is also company secretary for the Vision Super companies.
Noelle was appointed to the FRC on 3 June 2009 to 2 June 2012; reappointed from 31 August 2012 to 30 August 2015; with an extension from 29 April 2016 to 28 April 2019.
Ms Merran Kelsall
Merran originally qualified as a chartered accountant and practised in the profession for 20 years, including 10 years as a partner at BDO and now has a portfolio of independent directorships. Merran has considerable directorship and corporate governance experience, including working in audit, risk and compliance committees. Her industry experience encompasses health, education, insurance and financial and professional services, including contract management and government utilities.
Merran was appointed to the FRC on 29 July 2008 to 9 August 2010; reappointed from 7 January 2011 to 6 April 2011, with an extension to 9 August 2013; and from 10 August 2013 to 9 August 2016 with a further extension to 31 December 2016.
Mr Kevin Lewis
Chief Compliance Officer
Australian Securities Exchange
Kevin is the Chief Compliance Officer of the ASX and a member of the ASX Corporate Governance Council. He was the principal author of the 3rd edition of the Corporate Governance Principles and Recommendations and also of Guidance Note 8 on continuous disclosure./p>
Prior to joining ASX, Kevin was a lawyer for 30 years, specialising in financial services, mergers and acquisitions and corporate matters. He held a number of senior positions with law firms and as in-house counsel.
Kevin is also an Adjunct Professor with Sydney University Law School.
Kevin was appointed to the FRC on 14 March 2011 to 13 March 2014 and reappointed to 3 April 2017.
Mr Graeme Mitchell
New Zealand External Reporting Board
Graeme is a chartered accountant and professional director, being Deputy Chair of National Provident Fund Board of Trustees and a Director of Barnardos New Zealand and Retirement Income Group Limited. He also chairs the Audit Committees of the Ministry of Justice, the Ministry of Social Development, and the Human Rights Commission, and is an independent member of the audit committee of Porirua City Council. He is also the Honorary Consul General for Norway and was made an Officer of the Royal Norwegian Order of Merit in 2009 for services to Norway overseas.
Graeme is a retired Deloitte Audit and Assurance Partner.
Graeme was appointed to the FRC on 3 July 2014 and his term expires on 28 February 2019.
Mr David Nicol
Under Treasurer, Treasury and Economic Development
Directorate of the ACT Government
David, as Under Treasurer, advises the ACT Treasurer on the management of the Territory's budget, covering strategic issues of financial management, economic policy, revenue and tax policy and federal financial relations. David's responsibilities also cover matters of workers compensation, compulsory third party insurance and other insurances, and the shared corporate services provider for the ACT Public Service.
David is also Chair of the Heads of Treasuries Accounting and Reporting Advisory Committee and he has extensive experience in public budgeting and financial reporting and in public policy areas of social welfare and income support, government service delivery, industry, labour market and education.
David was appointed to the FRC on 3 July 2014 and his term expires on 7 March 2017.
Ms Kris Peach
Kris has extensive experience in accounting standard setting having previously served on the Australian Accounting Standards Board (AASB) as both a member and as the Deputy Chair and as a member of the Australian Urgent Issues Group.
Kris was previously a partner in KPMG's International Standards Group and Australia's Department of Professional Practice, interpreting complex technical accounting issues for a wide range of public and private entities. She also had a number of international financial reporting leadership roles within the firm.
Kris was appointed to the FRC on 3 November 2014 and her term expires on 2 November 2019.