AASB 1046 Director and Executive Disclosures by Disclosing Entities

3 September 2004

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

Dear David

AASB 1046 Director and Executive Disclosures by Disclosing Entities

The Group of 100 (G100) believes that one set of disclosure requirements that satisfies the Corporations Law and Accounting Standards should apply for director and executive remuneration. It is incongruous for listed companies to comply with two sets of overlapping requirements relating to director and executive remuneration. In this regard we consider that the existing differences between the requirements in the Corporations Law and AASB 1046 ‘Director and Executive Disclosures by Disclosing Entities’ should be removed so that there is consistency in the definition of related parties, the disclosures relating to executives who are not directors and how they are identified, and the measurement basis for equity options and other remuneration.

The G100 recommends that since it is unlikely that the Corporations Law will be amended in a timely fashion the AASB should, in the context of requirements for a Remuneration Report by listed entities, minimise the differences by bringing AASB 1046 into line with the Corporations Law as part of the AASB’s consideration of the interaction of AASB 1046 and AASB 2 ‘Share-based Payment’.

Yours sincerely

John V Stanhope
National President