Members' Update

FRC Membership:

John Stanhope, CFO Telstra and past National President, is the G100’s representative on the FRC with effect from 1 March 2006.

Liaison with ASIC:

Tony Reeves, CFO OneSteel Limited and a member of National Executive, is the G100 representative on an ASIC Standing Committee – Accounting and Auditing. The purpose of the Standing Committee is to enhance communication and understanding between ASIC and those subject to its regulation.

Regulation Review Task Force:

The Government has released the recommendations of the Task Force and its response in respect of some items. Recommendations relating to financial reporting and governance include:

• The Australian Government should introduce amendments to allow companies to make annual reports available on the internet and require hard copies to be sent only to investors who request them. (Note: The Government agrees with this recommendation and will effect the necessary legislative amendments).
• The Australian Government should consider removing the requirement for the executive remuneration report to be included in the concise report. (Note: This is being addressed in a separate Consultative Paper).
• The Australian Government should review the existing reporting requirements for executive remuneration. The review should consider the merits of removing the requirements imposed by the Corporations Act where they conflict with Australian Accounting Standards. (Note: This is being addressed in a separate Consultative Paper).

Recommendations are also made in respect of the following:

• achieving a balanced approach to regulation;
• achieving flexible regulation;
• maintaining confidence in regulatory decision-making;
• co-operation and coordination between regulators;
• rationalizing data collection and regulatory reporting;
• ensuring effective administration of regulation; and
• streamlining financial and corporate reporting.

Corporate and Financial Services – Regulation Review (www.treasury.gov.au):

Chris Pearce, Parliamentary Secretary to the Treasurer, has also released a Consultation Paper. Comments on the proposals are requested by 19 May 2006 including the following:

• Concise Reporting: Separation of the remuneration report from the directors’ report and inclusion of summary information and whether to require only summary information from the directors’ report. (Note: G100 submissions would support these initiatives).
• Executive Remuneration: The most effective means of harmonizing and removing duplication without diluting the disclosure. (Note: G100 has argued the need for a single set of requirements).
• Parent Entity Financial Statements: Whether only summary information should be required and, if so, what information. (Note: G100 has strongly supported parent entity relief for several years).
• Related Party Transactions: Whether to amend law to allow financial benefit below a prescribed level (say $5,000) to related parties without seeking member approval.
• Extend the Business Judgment Rule: Whether there should be general protections for directors and other officers excusing them from liability under the Corporations Act, subject to certain conditions. (Note: G100 has previously supported proposals to extend the business judgment rule).

Comments are requested from members on these and other proposals. Could you please provide comments to Geoff Harris (g100tech@bigpond.com) by Monday 10 May 2006.

Accounting Standards:

The AASB will issue:

• ED 148 which proposes amendments to AASB 101 ‘Presentation of Financial Statements’ as part of the IASB’s convergence project with the FASB. As part of this process it is likely that Australian text included in AASB 101 will be removed; and
• agreed to give a high priority to a domestic project to comprehensively review AAS 25 ‘Financial Reporting by Superannuation Plans’. (See AASB Action 93 for further details www.aasb.gov.au).

(Group of 100 submissions are posted on the website www.group100.com.au)

  Back to Index