Members' Update

Future of Audit Project

National Executive agreed to participate in this project which is being undertaken by the ICAA, CPA Australia and the Big 4. The Australian National Centre for Audit & Assurance Research (ANCAAR) has been commissioned to undertake the research.

The G100 Secretariat will forward initial information about this project to members to enable them to decide if they wish to participate and to respond directly to ANCAAR.

Mentoring Project

National Executive agreed to conduct a pilot project on Mentoring with a view to determining the feasibility of developing a broader-based mentoring program.  The pilot project will involve members of National Executive being mentors to mentees from other companies.

G100 Business Plan: National Executive finalized the G100 Business Plan which will be sent to members shortly.  The Business Plan is the outcome of a series of strategic planning sessions.

G100/IASB Liaison Group

The G100/IASB Liaison Group (comprising representatives from the BCA, AICD, ICAA and CPA Australia) will meet with IASB representatives (Warren McGregor – IASB member, Judith Downes – SAC member) and Mike Crooch – FASB member, early in June for discussions on issues such as the IASB Work Program and priorities including IASB/FASB convergence, Interpretations and IFRIC processes etc.

Regulation Review

The G100 submission on ‘Corporate and Financial Services Review – Consultation Paper’ emphasizes support for:

• revision of the required contents of a concise report;
• amendment of Corporations Law and Accounting Standards to achieve a single set of requirements relating to director and executive remuneration while achieving compliance with IFRS;
• the provision of summary information in respect of parent entity accounts; and
• reform of the dividend rules by adopting a solvency-based regime.

ED 148 ‘Proposed Amendments to AASB 101 Presentation of Financial Statements’

The AASB has issued ED 148 which mirrors an IASB ED issued as part of the IASB/FASB Convergence project.  The main features of the proposals are:

• the presentation of an opening balance sheet;
• owner changes in equity to be presented separately from non-owner changes in equity in a statement of changes in equity;
• the presentation of non-owner changes in equity in either one or two statements (the income statement and the statement of recognized income and expenses (SoRIE) or a single statement that combines both);
• the disclosure of details of reclassification adjustments (recycling between the income statement and the SoRIE); and
• the disclosure of dividends and earnings per share in the statement of changes in equity or in the notes.

Members are requested to provide comments on the proposals to g100tech@bigpond.com by Friday, 16 June 2006.

ED 149 ‘Proposed Amendments to AASB 101 Borrowing Costs’

The AASB has issued ED 149 which replicates IASB proposals to remove a major difference between IAS 23 ‘Borrowing Costs’ and FASB requirements.  ED 149 proposes:

• to require capitalisation of borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset as part of the cost of that asset; and
• to remove the option of immediately recognising those borrowing costs as an expense.

IASB Discussion Paper ‘Measurement Bases for Financial Reporting – Measurement on Initial Recognitions’

The G100 submission is available on the website.

FORTHCOMING ED: Financial Instruments Puttable at Fair Value

The IASB project is seeking to provide a short-term fix to address concerns about the classification of those financial instruments:

• puttable at the fair value of a pro rata share of the net assets; or
• with obligations for a pro rata share of the net assets of the entity on its liquidation. 

The project proposes that the definition of a financial liability be amended to exclude financial instruments of this nature thus permitting them to be classified as equity.

National Congress

The National Congress 2006 will be held on 26-27 September.  Please diarise these dates.   

• 26 September Congress Dinner: Mr Sol Trujillo – CEO Telstra, will be the Guest Speaker.
• 27 September Technical Program details will be advised shortly. 

In addition, a CFO Workshop will be presented by the USA Working Council of CFOs prior to the dinner on 26 September.  Details of this event will also be advised shortly.

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

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