Members' Update

1. Congress 2004

The Congress “The Role of the CFO – Striking a Balance” will be held at the Westin Hotel – Sydney on 27-28 September 2004. Speakers at the technical sessions include: Gail Kelly, Managing Director & CEO, St George Bank; Mike Wilkins, CEO Promina Group etc. The US Working Council for CFOs will also lead a forum on their latest research on the Future Role of the CFO.

2. Year 2005 Seminar Series

Ruth Picker, Ernst & Young, presented workshops in Melbourne and Sydney on ‘First-time Adoption of Australia Equivalents of IASB Standards’. Members will be advised of further seminars in this series.

3. CFO Workshops

CFO Workshops: The following Workshops were conducted recently:

• USA CFO Working Council representatives conducted a workshop for CFOs of G100 member organizations on ‘Executive Compensation’ and ‘Future of Finance’
   
• ‘Avoiding Treasury Risks’: The G100 in conjunction with Deloitte conducted workshops in Melbourne and Sydney for member organisations.
  

4. IASC Constitution Review

Executive discussed matters raised relating to the ongoing IASCF Constitution Review and agreed a supplementary submission which is posted on the G100 website.

5. Concise Financial Reports

National Executive agreed to make a submission to the AASB in respect of recommendations for amending AASB 1039 Concise Financial Reports to bring it up-to-date with the Year 2005 and CLERP 9 requirements.

The main features of the recommendations are:

• to remove the discussion and analysis requirement for listed entities because a review of operations and financial condition will be required as part of the directors’ report; and
   
  inclusion of disclosures relating to auditor remuneration and remuneration of directors and executives.
  

6. Financial Instruments

National Executive considered draft comments on the IASB/AASB Exposure Draft regarding restricting the ability of entities to use the fair value option in IAS 39/AASB 139. National Executive does not support the proposals to introduce an additional verifiability test for applying the fair value option because of the potential mismatching of assets and liabilities of financial institutions and insurers.

7. Parent Entity Financial Reports

National Executive agreed a submission to the AASB on the discussion paper ‘Relevance of Parent Entity Financial Reports’. G100 has taken the view that parent entity financial reports should be audited and lodged with ASIC and that parent entity disclosures should be included in the consolidated financial report by way of note.

8. Year 2005 Standards

The principal decisions of the June AASB meeting are:

• Relief for Parent Entities: Carry forward relief for parent in AASB 1032 and AASB 1033 in respect of certain disclosures. This means that a parent entity taking advantage of the relief will not be able to make an unqualified statement of compliance with IASB Standards in respect of the parent entity financial statements.
   
• Extractive Industries and AASB 1047 Disclosures: It would be reasonable for companies in the extractive industries to disclose in 30 June 2004 financial reports that the impacts of changes from the existing AASB 1022 are not yet determinable. The AASB was advised that the IASB Standard, which proposes to ‘grandfather’ existing practices, is not expected to be issued by the IASB until December 2004.
   
• Agriculture: Clarified decision that an entity that has initially recognized a biological asset at net market value under AASB 1037 cannot rebut the presumption in AASB 141 in respect of the reliability of fair value for that asset. This means that entities that applied AASB 1037 cannot change the basis of measurement for existing assets on the transition to AASB equivalents to IASB Standards.

June 2004

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