Members' Update

1. Congress 2004

Brochures for the Congress “The Role of the CFO – Striking a Balance” have been mailed to you and detailed information has also been posted on our website. Members and their staff are encouraged to register for this event.

2. ASIC Issues

• Related Party Transactions: ASIC has announced that it will scrutinize related party transactions, documentation and advice to shareholders and will change its practice regarding defective documents. ASIC regards that the onus is on companies to ensure that the relevant information is available to shareholders on first issue of the documents. The weaknesses identified include:
   
  • inadequate disclosure of directors’ emoluments
  • inadequate disclosure of relating to valuations
  • identification of related party and nature of existing interest
  • the nature of, and reason for, the financial benefit
  • dilution effects of transaction.
     
• Continuous Disclosure: ASIC has released draft proposals on compliance with the CLERP 9 amendments.

3. Accounting Standards

• AASB 1046 ‘Director and Executive Disclosures’: The AASB is proposing to amend AASB 1046 so that its requirements are consistent with those in AASB 2 ’Share-based Payment’. The amendments are expected to be finalized before 1 January 2005. In addition, the G100 is writing to the AASB to recommend that it also address the differences between the AASB 1046 requirements and the Corporations Law.
   
• AASB 1039 ‘Concise Financial Reports’: The G100 submission to the AASB recommending amendments to AASB 1039 in the context of the Year 2005 project and CLERP 9 is posted on the website. The AASB is expected to review AASB 1039 in Q4/2004.
   
• Intangible Assets: A G100 Working Party is reviewing the G100 Statement of Principles on accounting for intangible assets. The basis of the approach is to confirm that identifiable intangible assets (whether purchased or internally generated) should be subject to the same recognition and measurement rules as other assets.

4. ASX Rules

The ASX has issues guidance notes [Update No. 13/04] in respect of complying with the Listing Rules Appendix 4E particularly disclosures required by AASB 1047 ‘Disclosing the Impacts of Adoption of Australian Equivalents to IFRSs’.

5. National Executive

At the AGM on 18 August, the following were elected to serve a two-year term on National Executive:

(All submissions can be accessed via the website www.group100.com.au)

August 2004

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