Submission to the AASB - Year 2005 Strategy

14 January 2004

Mr David Boymal
Chairman
Australian Accounting Standards Board
PO Box 204
COLLINS STREET WEST VIC 8007

Dear David

Year 2005 Strategy

The Group of 100 has become concerned about the time available to prepare for implementation of the Year 2005 strategy in the event of delays in issuing Australian equivalents to IASB Standards.

The G100 acknowledges that the AASB’s ability to issue these Standards depends on the issue of Standards by the IASB. There are concerns that the IASB may not issue all of the Standards impacting on Australian companies by its target date of 31 March 2004. While we accept that the AASB has indicated that the Australian equivalents of IASB Standards will be issued as soon as possible after 31 March 2004 it is unclear how the AASB will respond in the event that this timetable is not achieved.

The time available for planning and preparation was always constrained and any delays are likely to place significant burdens on companies and their ability to respond effectively on a timely basis. It is essential to an orderly implementation that the time available to companies to prepare for implementation for reporting periods beginning on or after 1 January 2005 (and opening balance sheet at 1 January 2004 for companies with December year-ends) is maximised. The issue of Australian equivalents to IASB Standards after May 2004 will place significant and unreasonable burdens on companies and will have adverse effects on compliance with the Year 2005 objective.

The G100 would be pleased to learn that the AASB (and FRC) have developed contingency plans in the event that the issue of Standards is delayed beyond May 2004. While the posting of Pending Standards to assist companies in their preparation is appreciated, companies are unlikely to make final decisions until the precise legal requirements are certain.

Yours sincerely

John V Stanhope
National President

c.c. Chairman - FRC