Bulletin
2000/5 - 18 July 2000
The Financial Reporting Council (FRC) met on 3 July 2000, its sixth meeting since it first convened in October 1999.
The meeting was the first attended by the Chairman of the reconstituted Australian Accounting Standards Board (AASB), Mr Keith Alfredson, whose appointment took effect from 8 May 2000. FRC members welcomed Mr Alfredson and congratulated him on his appointment.
The reconstituted AASB has met twice - on 29 May and 28-29 June 2000 - and has scheduled four two-day meetings, embracing a full work program, over the remainder of this year. The FRC Chairman, Mr Paul Rizzo, welcomed the fact that the new accounting standard setting arrangements were now fully operational and looked forward to a continuing close working relationship between the AASB and FRC on relevant issues.
On 3 May, the FRC provided the AASB with a paper agreed by the Council (subject to feedback from the Board) setting out how it proposes to undertake its statutory functions, including its relationship with the AASB.
Under the Australian Securities and Investments Commission Act 1989, the FRC's responsibilities include approving the AASB's priorities, business plan, budget and staffing arrangements. The FRC may also give the AASB directions, advice or feedback on matters of general policy and the AASB's procedures. The FRC's letter of 3 May to the AASB requested that the Board provide the Council with proposals in relation to these issues. Consideration of the Board's initial proposals was the main item on the FRC's agenda on 3 July.
The FRC approved the interim standard setting priorities proposed by the Board. The AASB has posted these priorities on its website, together with estimated completion dates. Other elements of the Board's proposed business plan are currently being prepared and will be considered by the FRC at a later stage.
The FRC supported the direction of the proposed AASB budget for 2000-01 and agreed to consider the matter again when additional information is available. The FRC also agreed to further consider the Board's proposed staffing arrangements in the context of the budget and in the light of decisions on the Board's publications function.
The FRC also discussed the Board's proposals on the size and composition of the Urgent Issues Group and a draft charter for the Group. It was agreed that the Board would provide the FRC with further advice on these issues.
In addition, the FRC discussed the Board's policies relating to the conduct of meetings (including quorum, voting, agenda papers and dissenting views) and consultation with stakeholders. The Council will return to these issues on the basis of further Board advice.
Under the legislation, the FRC is responsible for determining the terms and conditions of appointment of the AASB members it appoints (ie, all members except the Chairman who is appointed by the Treasurer). The FRC agreed that these members would be remunerated at a daily rate of $600, to be reviewed after one year, and receive reimbursement of travel expenses up to the amounts applicable from time to time to Tier 1 public office holders under Remuneration Tribunal determinations.
The FRC also considered a paper prepared by its secretariat on recent developments in international accounting standard setting.
Appointment of Alternate members of the FRC
The Treasurer had made the following appointments to the FRC:
- on the nomination of the Investment and Financial Services Association, Mr Mark Armour, Chief Executive, Funds Management, AXA as Alternate member for Mr Leigh Hall, AM; and
- on the nomination of CPA Australia, Mr David Edwards, AM, Chief Executive Officer, CPA Australia, as Alternate member for Mr Graeme McGregor, AO.
The appointments took effect on 19 April 2000 and expire on 31 December 2002, the expiry date of the appointments of Mr Hall and Mr McGregor.
The FRC is the peak body responsible for the broad oversight of the accounting standard setting process for the private, public and non-profit sectors. It comprises key stakeholders from the business community, the professional accounting bodies, governments and regulatory agencies.
- Key functions of the FRC are to advise the Government on the accounting standard setting process and the development of international accounting standards, and to determine the broad strategic direction of the standard setter, the Australian Accounting Standards Board.
- The legislation formally establishing the new accounting standard setting arrangements came into effect on 1 January 2000.
For further information, please contact the secretariat of the Financial Reporting Council, c/- The Treasury, Parkes Place, Parkes ACT 2600.
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Mr Michael Kooymans |
Mr Les Pascoe |
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Ph: |
(02) 6263 3984 |
Ph: |
(02) 6263 3978 |
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Fax: |
(02) 6263 2770 |
Fax: |
(02) 6263 2770 |
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E-mail: |
E-mail: |
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