The Parliamentary Joint Committee on Corporations and Financial Services (PJC) is conducting an enquiry on corporate responsibility and TBL reporting which may have significant implications for corporates and the manner in which they address these issues. The Committee will consider the extent to which:
The G100 publication ‘Sustainability: A Guide to Triple Bottom Line Reporting’ was issued in 2003 to assist members identifying issues to be addressed when deciding whether to embark on TBL Reporting. The Guide is likely to be useful to members when considering input to the PJC.
| Members are requested to provide comments to assist in developing a G100 submission. |
National Executive, in conjunction with Deloitte, is reviewing the “Guide to Compliance with ASX Principle 7: Recognise and Manage Risk” in the context of the changes in the Corporations Act (CLERP 9) particularly CEO/CFO declarations, implementation of the Sarbanes Oxley regime and enhancements to the COSO framework, with a view to updating the guidance.
A discussion paper on the IASB research project ‘Management Commentary’ is expected to be issued in Q4/05. This evidences increasing emphasis on this form of reporting which is referred to in the ASX Principles and ASX Listing Requirements and in the Corporations Act as part of CLERP 9. Members are likely to find the G100 publication ‘Guide to Review of Operations and Financial Condition’ useful in complying with these requirements. In addition a Reporting Standard RS1 ‘Operating and Financial Review’ has been issued in the UK.
The AASB recently issued a number of Standards amending Australian equivalents to IFRSs. Details of these Standards (AASB 2005/1 to 2005/8) and Action Alerts are available at www.aasb.gov.au.
The AASB will soon issue an ED proposing amendments to AASB 3 ‘Business Combinations’ following the issue of an ED by the IASB and the FASB. The principal proposed changes include:
An ED proposing amendments to AASB 127 has also been issued. The main proposal is that non-controlling interests should be classified as equity within the consolidated financial statements and that the acquisition of non-controlling interests should be accounted for as an equity transaction.
The AASB will issue an IASB exposure draft proposing amendments to AASB 137/IAS 37 ‘Provisions, Contingent Liabilities and Contingent Assets’ and AASB 119/IAS 19 ‘Employee Benefits’ which will change the conceptual approach to non-financial liabilities. Under the proposals entities will recognize all obligations that satisfy the definition of a liability in the ‘Framework’ except where they cannot be measured reliably. The proposals require that uncertainty about the amount or timing of the settlement is reflected in the measurement of the liability but do not preclude recognition in the balance sheet. This reflects a significant change from current IFRSs where recognition does not occur when uncertainties about timing or amount exist and disclosure is by way of note. An outcome of this approach would be that Australian equivalents to IFRSs would also be consistent with US GAAP.
| National Executive agreed to form a Working Party to develop G100 responses to these EDs before 28 September. Members interested in participating in the Working Party are requested to contact Geoff Harris g100tech@bigpond.com. Copies of the EDs and associated materials are on the AASB and IASB websites. |
AASB 3 Business Combinations has been amended (AASB 2005-6) to exclude business combinations involving entities under common control. This achieves consistency with IFRS 3. The Standard is applicable to annual reporting periods beginning on or after 1 January 2006 with early adoption permitted.
The IASB is developing a project to focus on how to measure fair value. The project would not deal with when a standard should require a fair-value measurement, but only how to measure fair value is a standard requires it. The FASB is currently completing work on a similar project and the IASB’s project would build on the FASB’s work.
The G100 updated Statement on Intangible Assets is now available. The Statement proposes that intangible assets, including internally generated intangibles, be initially recognized at cost and be subject to the same revaluation requirements as other assets.
Deloitte has published Accounting Alert #5 2005/5 that provides an analysis of the transition and ongoing accounting policy choices and options in Australian equivalents to IFRSs. (www.deloitte.com.au/assuranceservices)
The ASX has announced a temporary rule change to extend the reporting deadline for half-yearly and preliminary final reports for reporting periods ending on or after 30 June 2005, from 2 months to 75 days. The ASX expects to return to the two-month deadline in December 2006.
The 2005 AGM will be held on 14 September 2005 in Brisbane, in conjunction with the National Executive meeting. Information about the AGM, together with nomination forms, will be mailed to members.
July 2005
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