Bulletin
2002/3 - 12 June 2002
The Chairman of the Financial Reporting Council (FRC), Mr Jeffrey Lucy, AM, welcomed the announcement today by the Parliamentary Secretary to the Treasurer, Senator the Hon Ian Campbell, of an additional $2 million to be provided over two years to help Australia meet its goal of adopting international accounting standards.
This additional funding will be provided to the FRC to supplement the $2.8 million a year being contributed for accounting standard setting in Australia by the Commonwealth, State and Territory governments, The Institute of Chartered Accountants in Australia, CPA Australia, The National Institute of Accountants, and the Australian Stock Exchange.
As announced by Senator Campbell, the additional funding will enable Australia to make a financial contribution to the work of the International Accounting Standards Board (IASB), supplementing the important contribution provided through the Australian Accounting Standards Board (AASB) as an IASB Liaison standard setter, and through Australians represented on the IASB, its oversight and subsidiary bodies, and at senior levels on the IASB staff.
The FRC will work out with the IASB appropriate accountability mechanisms for the funds, Mr Lucy said.
Some additional funding will also be made available on a contingency basis to assist the AASB in its Liaison work with the IASB.
Mr Lucy thanked Senator Campbell and the Australian Stock Exchange for securing the additional funding which will be sourced from the Exchange's Financial Industry Development Account following the transfer into the Account of excess money in the National Guarantee Fund.
This will enhance Australia's contribution to the development by the IASB of a single set of high quality accounting standards for world-wide use, as well as our preparedness for the early adoption of IASB standards in Australia, Mr Lucy said. The ambition is that this could occur by 2005, in line with the timetable of the European Union.
Mr Lucy said that the FRC also planned to approach large corporations in Australia for voluntary contributions to the accounting standard setting process.
The FRC is the peak body responsible for the broad oversight of the accounting standard setting process for the private, public and not-for-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, appoint members of the independent standard setter, the Australian Accounting Standards Board (AASB) (other than the Chairman who is appointed by the Treasurer), approve and monitor the AASB's priorities, business plan, budget and staffing arrangements, and determine its broad strategic direction.
For further information, please contact the secretariat of the Financial Reporting Council, c/- The Treasury, Langton Crescent, Parkes ACT 2600.
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Mr Michael Kooymans |
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Ph: |
(02) 6263 3984 |
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Fax: |
(02) 6263 2770 |
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E–mail: |
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