Bulletin to Members
|
The G100 is finalising its submission on the CGC’s consultation paper on the review of its guidelines and whether it should develop guidelines on reporting on corporate social responsibility/sustainability risks. A concern of the National Executive is the proposal to extend CFO/CEO sign-off to include non-financial risks. While not seeing a role for the CGC in respect of reporting on corporate responsibility/sustainability risks. Executive is of the view that if guidance is provided it should not be part of the principles. The G100 submissions to the Parliamentary Joint Committee and to the CAMAC review indicate that at this stage of its development, the nature, format and content of reporting is a matter for judgment by directors in response to community and stakeholder expectations.
[Note: Members are encouraged to make individual/separate submissions explaining their views on the impacts of the proposals. Submissions outlining the effects on individual companies will be particularly helpful to the CGC in reaching its decisions. Copies of the proposals can be downloaded from www.asx.com.au.]
The G100 submission on the Consultation Paper indicates broad support for the company reporting proposals in respect of director and executive remuneration and electronic distribution of annual reports but expresses disappointment that no action is proposed in respect of parent entity financial statements and solvency-based rules for dividend distribution.
The Liaison Group met with the IASB members and staff in Melbourne on 20 December. The principal matters discussed were the experience of Australian entities in implementing IFRSs, concerns about the approach to interpretations, including the role of major accounting firms and the IASB/FASB convergence projects. The Liaison Group will meet with Sir David Tweedie and Warren McGregor in Melbourne on 8 March 2007.
[Note: IFRIC agenda decisions (reason for not adding issues to its agenda), while not authoritative, are a valuable source of guidance on interpretations. These are located at www.iasb.org.]
G100 representatives recently participated in two IASB Roundtables:
The AASB is proposing to achieve greater consistency with IFRSs by reinstating previously removed IASB paragraphs and options and withdrawing additional Australian requirements and guidance. The G100 supports the proposals as they remove a potential source of difference between IASB Standards and their Australian equivalents for for-profit reporting entities. Submissions to the AASB are requested by 28 February 2007.
The IASB has issued a Discussion Paper with comments requested by 4 May 2007. The DP seeks comment on whether the FASB’s SFAS 157 ‘Fair Value Measurements’ should form the basis of an IFRS. The purpose of the project is to provide guidance on determining fair values where that is required by an IFRS and is not seeking to extend the use of fair value measurements.
[Note: National Executive will consider a draft submission at its meeting on 22 March 2007. Members are requested to forward comment to the Secretariat for consideration in preparing the draft. The DP can be downloaded from the IASB and AASB websites.]
Recent G100 submissions are posted on the website.
Back to Index