Bulletin
2008 / 01 – 12 February 2008
The first Financial Reporting Council (FRC) meeting for 2008 was held in Melbourne on 12 February 2008. This was the first meeting chaired by incoming chairman, Mr Jeffrey Lucy. The principal matters dealt with at the meeting were:
- the performance of the FRC’s auditor independence function;
- the ongoing financial contributions of the professional bodies;
- proposed changes to the governance structure for the FRC, AASB and the AUASB;
- a new business plan programme for the FRC, the AASB and AUASB;
- The 2008 Ken Spencer Memorial Lecture, and
- reports from standards setters and committees.
The meeting was informed that FRC Chairman, Mr Jeffrey Lucy, has held a preliminary round of meetings with officials from APRA, ASIC, the professional bodies and the IASB. The Chairman plans to meet with the PCAOB, SEC, European Commission, the Financial Stability Forum, and EFRAG in March 2008.
Auditor Independence functions
The FRC heard, from the Chair of the Audit Independence Committee, that the 06/07 Auditor Independence report did not find any systemic issues.
Proposed changes to the governance structure of the AASB and AUASB
The FRC considered the proposed transition by the boards to the Financial Management Accountability framework.
2008 Ken Spencer Memorial Lecture
The FRC discussed arrangements for the 2008 Ken Spencer Memorial Lecture, to take place in Sydney on 28 May 2008.
Reports from standards setters and committees
The FRC received reports from the respective Chairs of the AASB, AUASB, FRC Finance Committee, FRC Nominations Committee and FRC Audit Independence Committee. A report was also received from the Trans-Tasman Accounting and Auditing Standards Advisory Group (TTAASAG).
Issues addressed in, or arising from, these reports included:
- a progress report on public sector accounting issues.
- the FRC Nominations Committee confirmed that new appointments have been made to the AASB and the AUASB, and that the two boards are now at full strength.
- Australia and New Zealand are working together to create a sub-committee of TTAASAG to identify suitable candidates for international appointments.
- that nominations are needed for the FRC Audit Independence Committee.
- The Audit Independence Committee is reviewing its charter.
- the business plans of the AASB and the AUASB were discussed, and will be further progressed ahead of next meeting.
Other matters
- The FRC will consider the work program for Auditor Independence report for 2007-08 at its next meeting.
- The FRC is considering a suggestion from the G100 about conducting a post implemention review of IFRS adoption. A first step in this consideration will be to contact the IASB to guage their interest for this to have international interest.
- The FRC confirmed its December 2006 decision that GAAP/GFS harmonisation at the government department level is expected to be delivered by 2010.
- It was confirmed that Sir David Tweedie, Chairman of the IASB, will visit Australia in August 2008.
About the FRC
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. A list of the current FRC membership is on the FRC’s website.
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.