Minutes
| Date: | Wednesday 16 December 2020 |
| Time: | 2:00pm - 4:00pm |
| Location: | Microsoft Teams meeting |
1. Introduction
The Chair noted that Professor Roger Simnett AO has tendered his resignation to the Hon Michael Sukkar MP, Minister for Housing and Assistant Treasurer, as Chair of the Auditing and Assurance Standards Board (AUASB) and as a member of the Financial Reporting Council (FRC) from 31 December 2020. The Chair noted that Professor Simnett will continue as a member of the International Auditing and Assurance Standards Board (IAASB). The Chair, on behalf of the FRC, thanked Professor Simnett for his significant contribution as a member of the FRC and as Chair of the AUASB.
The Chair noted that Keith Kendall, Cameron McDonald and Lawrie Tremaine were apologies for the meeting.
Stein Helgeby outlined the work being progressed by the FRC Public Sector Working Group and the Australian Accounting Standards Board (AASB) on the post implementation review of AASB 1049. The FRC Public Sector Working Group will report back to the FRC with updates in due course. Members supported the FRC Public Sector Working Group and AASB undertaking this work.
The Chair and Greg Yanco proposed holding an informal meeting to discuss the ASIC Audit Inspection Program in February 2021.
The Chair noted that he will obtain feedback from members after the FRC meeting on trialling Microsoft Teams for the meeting.
Anne Waters noted that the results of the Audit Committee Chairs survey on Audit Quality are due shortly. The results will be provided to ASIC for inclusion in the ASIC report on audit quality measures. A formal report on the results will be issued to the FRC early next year for comments.
Members confirmed that there were no conflicts of interest raised by agenda items for this meeting.
1a. Attendees and apologies
| Members in attendance: | Observers: | Apologies: |
|---|---|---|
| Bill Edge - Chair | Cathie Armour, Greg Yanco, Doug Niven - ASIC | Keith Kendall - AASB Chair |
| Roger Simnett - AUASB Chair | Tom Dickson, Ruth Moore- Treasury | Cameron McDonald |
| Stein Helgeby - Deputy Chair | Justin Williams, James Barden- AASB | Lawrie Tremaine |
| Suzanne Bell | Anne Waters - AUASB | |
| Michele Embling - XRB Chair | April Mackenzie - XRB | |
| Stewart Walters | Anita Cuming - FRC Secretariat |
1b. Register of interests
Members confirmed their entries as recorded in the Register of Interests.
2. Matters for approval
2a. Minutes of the previous meeting - 5 November 2020
Members noted the minutes from the FRC meeting on 5 November 2020 which had been approved out-of-session.
3. FRC Response to PJC Inquiry
Members approved the FRC’s response to the final report on the PJC Inquiry into Regulation of Auditing in Australia.
The Chair noted that the FRC Audit Quality Action Plan will be updated in 2021 pending the government’s response to the report.
4. FRC/AASB/AUASB Submission to the IFRS Consultation Paper
Members approved the FRC, AASB and AUASB’s joint submission to the IFRS Foundation’s Consultation Paper on Sustainability Reporting issued in September 2020. Members thanked Nikole Gyles, James Barden and Evelyn Ling from the AASB for coordinating the joint Australian submission.
Michele Embling outlined the key points from the XRB’s proposed submission on the Consultation Paper.
5. Draft FRC Strategic Plan 2021-2024
Members discussed the draft FRC Strategic Plan 2021-2024. The Chair noted that an environmental analysis had been included and that the strategic objectives are consistent in format to those of the AASB and AUASB.
Members recommended including a reference to cybersecurity, addressing the issue of alternative profit measures, rephrasing ‘making financial reports simpler’, including a comment on addressing the decline in RCAs and ensuring success factors were phrased in the positive.
6. Next meeting and close
The next FRC meeting will be held on Wednesday 31 March 2021.