Bulletin
2006/1 – 2 March 2006
The Financial Reporting Council (FRC) held a special strategy meeting in Melbourne on 20 February 2006. A list of the current FRC membership is attached.
At the meeting a number of long-term strategic issues concerning the role of the FRC were considered. Discussion ranged over the FRC’s progress to date and ways in which the FRC can better fulfil its mandate to provide guidance to the AASB and AUASB on accounting and auditing standards and to monitor the effectiveness of auditor independence requirements. Improvements to existing operations, as well as possibly including new tasks, were canvassed.
The strategy meeting was split into four sessions:
Session A: Assessment of FRC's Progress So Far
This session undertook a critical examination on how the FRC is performing its functions, emphasising those areas which might require further action or a different approach.
The meeting concluded that the FRC is to establish a closer working relationship with the standard setting bodies, in particular, taking a more active role in providing guidance to the AASB and AUASB on issues of policy as they arise; identify issues requiring particular consideration in the best interests of the Australian economy; and clearly articulate its role in the area of auditor independence.
Session B: How Can the FRC Be More Effective?
The aim of this session was to examine the way the FRC conducted its work and identify any changes that could positively contribute to it operating more effectively.
A number of possible actions were discussed, including inviting representatives of stakeholder groups to provide short presentations at the end of FRC meetings, providing more guidance to the work of the FRC committees on the Council's priorities and considering the option of issuing media releases associated with major FRC outcomes or decisions.
Session C: Long Term FRC Issues
This session focussed on the longer term issues for the FRC Council that may require new strategies and forward planning by the Council.
The FRC agreed to focus on early identification and promotion of suitable candidates for nomination to relevant international organisations. On the topic of funding, the Council agreed to seek clarification / confirmation of the medium-term funding commitments of the professional accounting bodies as well as from the State and Territory Governments, and undertake a bottom-up review of funding needs in order to provide advice for the Commonwealth review of FRC funding in October 2006.
Session D: What Could Be the FRC's Role?
This session looked beyond the FRC's current functions to explore possible future roles which could be put to the Government for consideration.
There was unanimous agreement that the priority for the FRC was to be most
effective in the performance of its current functions. Any possible expansion
of functions would be put to the consideration of Government before engaging
in consultation with stakeholders.
Regular FRC business will be conducted at the next FRC meeting to be held in Sydney on 20 March 2006.
The FRC is the peak body responsible for the broad oversight of the accounting and auditing standard setting process for the private and public sectors, as well as monitoring the effectiveness of auditor independence requirements in Australia. It comprises key stakeholders from the business and investing communities, the professional accounting bodies, governments and regulatory agencies. The FRC advises the Government on the accounting and auditing standard setting process and on the development of international accounting and auditing standards. It determines the broad strategic direction of the standard setters, the Australian Accounting Standards Board and the Auditing and Assurance Standards Board.
For further information, please contact the Secretary of the Financial Reporting
Council
c/- The Treasury, Langton Crescent, Parkes ACT 2600.
Mr Jorge del Busto
Ph: (02) 6263 3144 Fax: (02) 6263 2770
E-mail: jdelbusto@frc.gov.au
or visit the FRC’s website at
www.frc.gov.au.
ATTACHMENT
MEMBERS OF THE FINANCIAL REPORTING COUNCIL
Members:
- Mr Charles Macek, Company Director - FRC Chairman (appointed as Chairman by the Treasurer and nominated as an FRC member by the Securities Institute of Australia);
- Ms Elizabeth Alexander, AM, Adviser to Blake Dawson Waldron — FRC Deputy Chairman (appointed as Deputy Chairman by the FRC and nominated as an FRC member by the Australian Institute of Company Directors);
- Mr Don Challen, Secretary, Tasmanian Department of Treasury and Finance — nominated by Heads of State and Territory Treasuries;
- Mr Richard Humphry, AO, Trustee, International Accounting Standards Committee Foundation;
- Mr Warwick Hunt, Chairman, Accounting Standards Review Board of New Zealand – nominated by the New Zealand Minister of Finance;
- Mr David Jackson, Director, Australian Shareholders’ Association — nominated by the ASA;
- Mr Graeme McGregor, AO, Company Director — nominated by CPA Australia;
- Mr Jim Murphy, Executive Director, Markets Group, Department of the Treasury — nominated by the Commonwealth;
- Mr Tom Pockett, Chief Financial Officer, Woolworths Limited — nominated by the Business Council of Australia;
- Mr Phillip Prior, Chief Financial Officer, Department of Defence — nominated by the Commonwealth;
- Mr Brian Scullin, Company Director – nominated by Investment & Financial Services Association (IFSA);
- Ms Catherine Walter, AM, Company Director and Solicitor; Chair of the Business Regulation Advisory Group;
- Ms Jan West, Partner, Deloitte Touche Tohmatsu - nominated by The Institute of Chartered Accountants in Australia;
- Mr Klaus Zimmermann, Chief Executive Officer, Eldercare Incorporated and Director, National Institute of Accountants — nominated by the NIA.
Alternate members:
- Mr Roger Cotton, Chief Executive Officer, National Institute of Accountants; alternate member to Mr Klaus Zimmerman — nominated by the NIA.