Home > Reports > FRC, AASB & AAUSB Annual Report 2006-2007 - Part 2: Financial Reporting Council

Financial Reporting Council

Chairman’s report

The Financial Reporting Council (FRC) consolidated the previous year’s work in progress during 2006-07. The FRC continued its work on auditor independence matters, monitored the actions of the AUASB in issuing legally enforceable auditing standards, and provided guidance to the AASB on its standard setting, development of guidance material for the not-for-profit sector, and the local application of the proposed IFRS standard for SMEs.

The key highlights for 2006-07 included:

1. amendments to the auditing standards by the AUASB to reflect the auditor’s extra requirements to form an opinion on IFRS compliance;
2. work undertaken by the AASB on accounting issues for the public sector and the not-for-profit sector in line with IFRS;
3. work undertaken by the AASB in relation to the application of the IFRS’s standard for SMEs in Australia;
4. continuation of the Trans-Tasman harmonisation of accounting standards between the AASB (Australian) and the Financial Reporting Standards Board (New Zealand); and
5. participation in the IFRS Regional Policy Forum, which was held in Japan on 29 March 2007.

FRC responsibilities

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.

Accounting standards setting

The focus in 2006-07 was on IFRS interpretation, standard setting, the application of the IFRS to the not-for-profit sector, Trans-Tasman harmonisation of accounting standards and continuation of the GAAP and GFS reporting systems harmonisation for the General Government Sectors (GGS).

During 2006-07 the AASB adopted a new interpretation model for Australian Accounting Standards including IFRS; this model has replaced the activities undertaken by the Urgent Issues Group (UIG). In addition, the AASB undertook the interpretations function and the local uptake of IFRIC interpretations, with the assistance of expert advisory panels. The adoption of this model is as a result of the new principles-based accounting standards.

The FRC monitored the AASB’s work on the harmonisation of GFS and GAAP accounting standards project, to ensure that it continued to comply with the direction and requirements of the public sector strategy. The AASB divided the project into two stages. During 2006-07 the AASB focused on the first stage — harmonisation for the Whole of Government reporting by the Australian Government and State and Territory governments. This stage is scheduled for completion in October 2007, to allow for the consistent preparation of financial statements for all sectors of government in the 2008-09 Budget and Outcome reporting. The second stage — harmonisation of entities within the General Government Sector (GGS) is scheduled for completion by February 2010.

At an international level, the AASB is working on the application of the IASB’s proposed small and medium size entities (SMEs) standard in Australia. Further work on this area will continue in the year ahead to address potential burdens faced by these entities.

The FRC continues to monitor the performance of the AASB. Under the auspices of the Nominations Committee, the FRC undertook performance assessments of AASB members, via a peer review survey. The results of the assessment were discussed by the Nominations committee with Professor David Boymal, the AASB Chair, allowing him to provide feedback to individual Board members. The performance assessments are useful in determining the skills needs of the AASB.

The FRC appointed Ms Sue Highland and Mr Brett Rix as new AASB members; and reappointed Ms Kris Peach, Mr Brett Kaufman and Ms Joanna Perry to the AASB. I would like to thank retiring AASB members Mr Garth Cowan‑Campbell and Professor Ken Leo for their expertise and contribution during their tenure as AASB members.

Auditing standards setting

In 2006-07 the AUASB focused on continuing to formulate legally enforceable auditing and assurance standards and guidance pronouncements; and participation in international standard setting activities.

A highlight for the AUASB in 2006-07 was the release of amendments to the auditing standards to require auditors to report on IFRS compliance by Australian companies. The FRC and AUASB believe that this requirement will further enhance the international recognition of compliance with IFRS by Australian companies in their financial reports.

The FRC monitored the performance of the AUASB, with the Nominations Committee implementing a performance assessment of AUASB members utilising a peer review survey. The results of the assessment were discussed by the Nominations Committee with Ms Merran Kelsall, the AUASB Chair.

The FRC reappointed Ms Dianne Azoor Hughes and Mr Clive Mottershead as AUASB members. There were no new appointments or resignations.

Auditor independence

The Audit Independence Committee has continued to provide significant assistance to the Council in the performance of the independence function. In undertaking this work, the Committee was ably assisted by the FRC’s Auditor Independence Consultant, Mr William Bartlett.

The key focus of the Council’s auditor independence work during 2006-07 was the monitoring of: the systems and processes used by Australian auditors to ensure their compliance with auditor independence requirements; and the professional accounting bodies for planning and performing quality assurance reviews of audit work undertaken by Australian auditors to the extent to which those reviews related to auditor independence requirements.

During the period under review the three consultants engaged during 2005‑06, to examine issues associated with quality review programmes and disciplinary procedures of the professional accounting bodies and the teaching of professional and business ethics by, or on behalf of, those bodies, presented their reports to the FRC. Subsequently, as part of the FRC’s 2006‑07 work programme, two additional consultants were engaged to examine issues arising from the work of the earlier consultants.

The FRC is currently considering the recommendations made by the consultants and, as part of this process, is consulting with its stakeholders.

Committees of the Financial Reporting Council

The FRC is supported by various Committees. These Committees perform an extensive role in undertaking background work to allow the FRC to make informed decisions at its meetings. The Committees operating in 2006-07 were:

• the Finance Committee;
• the Nominations Committee; and
• the Audit Independence Committee.

These are standing Committees with their own charters, which are reviewed on a regular basis.

In 2006-07 the Finance Committee assisted the FRC by overseeing the business plans and budgets of the AASB and AUASB, assisted in the preparation of the FRC’s and the Boards’ 2005-06 Annual Report, and advised the Council on payments made to the IASC Foundation. In addition, the Finance Committee successfully organised the Ken Spencer Memorial Lecture, which was held in Melbourne on 5 March 2007.

During the year the Nominations Committee undertook various selection exercises for the appointment of members to the AASB and AUASB Boards. Also, the Nominations Committee undertook a performance assessment of the AASB and AUASB members through a peer review survey, and provided feedback on the results to the Chairs of the Boards.

As noted above, the Audit Independence Committee continued to assist the FRC to perform its auditor independence functions during the year.

Stakeholder liaison

The FRC continued to liaise with a wide range of domestic and international stakeholders, including those with whom the FRC has established a formal Memorandum of Understanding (MoU) in relation to auditor independence matters, as these meetings are essential to the FRC’s process of gathering information.

The FRC maintained a strong presence internationally and domestically; and continued to foster relationships with stakeholders.

During July 2006 and April 2007, the FRC Secretary and I met with senior representatives of overseas regulatory and professional accounting bodies, which perform oversight functions equivalent to those performed by the FRC; and relevant standard setting and professional bodies. One of the aims of the meetings was to promote Australia’s commitment to convergence of international accounting standards. These meetings took place in Europe and North America and enhanced the FRC’s understanding of key financial reporting developments, such as global trends in accounting, auditing standards and audit independence matters; and confirmed that convergence is still the focus internationally.

I attended the International Financial Reporting Standards (IFRS) Regional Policy Forum in Tokyo on 29 March 2007, which was hosted by the Accounting Standards Board of Japan (ASBJ). This important forum which was a follow-up to the forum held in Sydney during October 2005 facilitated the exchange of IFRS related information across 14 different jurisdictions in the Asia-Pacific region. Particular focus was placed on the following three main areas:

• interpretations of IFRS within the Asia/Pacific region;
• financial reporting by SMEs on the for-profit and not-for profit sector; and
• IFRS branding issues — adoption of IFRS across different jurisdictions.

The Trans-Tasman partnership between the Council and its New Zealand equivalent, the Accounting Standards Review Board (ASRB), continued the consolidation of joint activities on standards setting between the AASB and the FRSB. During 2006-07, Mr Warwick Hunt (Chair of the ASRB) and I attended meetings of both the ASRB and FRC. Mr Hunt is the Chair of the Trans Tasman Accounting and Auditing Standards Advisory Group (TTAASAG) and provided reports on the TTAASAG’s work to FRC members.

On the domestic front, the FRC continued to raise its profile. As the Chairman of the FRC, I met with various stakeholders and attended relevant seminars, including:

• a meeting with the Parliamentary Secretary to the Treasurer;
• an appearance before the Senate Estimates Committee;
• recent ICAA/NIA and CPA Australia seminars held in Canberra, Sydney and Melbourne;
• an Ethics Forum held in Sydney; and
• a meeting with the Financial Sector Advisory Council.

Ken Spencer Memorial Lecture

A key highlight for the FRC was the 2007 Ken Spencer Memorial Lecture. The lecture is held in memory of Mr Ken Spencer, who was the Chairman of the AASB from 1994 to 1999 and was later a Trustee of the International Accounting Standards Committee Foundation and member of the FRC. He passed away in 2004.

The FRC, in conjunction with CPA Australia, The Institute of Chartered Accountants in Australia, the National Institute of Accountants and the Department of Accounting and Business Information Systems of The University of Melbourne, co-hosted the 2007 Ken Spencer Memorial Lecture, which was held at The University of Melbourne, on 5 March 2007.

The guest lecturer of the Ken Spencer Memorial Lecture was Sir David Tweedie, Chairman of the International Accounting Standards Board. The topic of his lecture was ‘Keep it Simple Stupid! Can global standards be principles-based?’ This was enjoyed by the audience, which included members of the Spencer family and relevant stakeholders.

Council membership

I congratulate and thank all of my colleagues for the hard work they have put into the FRC and its Committees during 2006-07. Their expertise and tireless commitment have enabled the Council to work on important issues. It is also important to recognise the commitment and the leadership demonstrated by the Committee Chairs, Ms Elizabeth Alexander AM (Audit Independence Committee), Mr Bruce Brook (Finance Committee) and Mr Klaus Zimmermann (Nominations Committee), together with the contributions of other Committee members.

The FRC members retiring in 2006-07 were Mr Graeme McGregor and Mr Phillip Prior. I would like to sincerely thank them for their expertise and their commitment to the FRC during their tenure.

New appointments to the Council in 2006-07 were:

• Ms Kathryn Campbell, Deputy Secretary, Financial Management Group, Department of Finance and Administration — nominated by the Australian Government;
• Mr Michael Coleman, Partner, KPMG — nominated by the Australian Institute of Company Directors; and
• Mr Mark Coughlin, Development Manager, Origin Energy — nominated by CPA Australia.

Congratulations to Ms Elizabeth Alexander, Mr Don Challen and Mr David Jackson on their reappointment to further terms on the Council.

I would like to sincerely thank Mr Richard Humphry AO, in his role as a Trustee of the IASCF, for his expertise and commitment to the FRC during his tenure, which ended in early July 2007. I wish him all the best in his future endeavours.

Assistance to the Council

Thanks are due to the Chair of the AASB, Professor David Boymal, and the Chair of the AUASB, Ms Merran Kelsall, for their work in keeping the FRC informed of developments. Both provide valuable input, often at Committee level, on matters of direct relevance to their Boards such as appointments and budgetary matters. They are ably assisted by their staff members.

I would like to thank Mr Jorge del Busto for his ongoing support and valuable contribution to the FRC during his tenure as the FRC Secretary. I wish him all the best in his future endeavours. Thank you to the Secretariat for enabling the work of the Council and its Committees to be carried out in a timely and effective manner.

Retrospective and 2007-08 outlook

The decision by the FRC in 2002 that Australia should adopt IFRS was a leap of faith. It reflected the reality of global capital markets and the need for Australia to have access to capital on the most favourable terms. There are now some 100 countries requiring or permitting the use of IFRS. More significantly the US regulator, the Securities and Exchange Commission, has confirmed that from 2009 IFRS will have equivalent status with USGAAP. This will eliminate the need for foreign entities reporting in the US to reconcile their accounts to USGAAP if they are IFRS compliant.

The implementation of IFRS and, more recently, the revised suite of auditing standards as legal instruments has gone relatively smoothly. This reflects well upon the accounting profession, CFOs and company directors. Many of the issues raised during this process can be regarded as transitional. However, continuing vigilance will be required to ensure that the needs of users of financial reports are met and to achieve the appropriate balance between costs and benefits.

As I reflect on the Council’s recent achievements in furthering its aims and objectives, I expect that 2007-08 will provide many challenges on both the domestic and international fronts. Globally, the main challenges will be to protect the integrity of IFRS, in terms of both the quality of the standards and their implementation across different jurisdictions. In addition, their relevance to users will remain an ever-present challenge for standard setters. This is most evident with respect to SMEs. For Australia with its sector-neutral approach, the specific circumstances and needs of the public sector and not-for-profit organisations will be a continuing focus given that IFRS are essentially being developed for private sector corporations.

As more countries adopt IFRS, Australia will face an increasing challenge in terms of maintaining its significant global influence in standard setting. We continue to exert disproportionate influence for our small population. This has been achieved by continuing to provide substantial direct financial support to the IASB, through membership and participation in the various arms of the international governance framework and, most importantly, through substantial high-quality technical input to the standard setting process. This support must be maintained if we wish to ‘occupy a seat at the table’.

The Council and I are confident of meeting those challenges with a high degree of capability.

The year ahead will be demanding for the AASB and the AUASB as they change their enabling legislation and governance structure, in line with the Government’s decision to adopt the Uhrig review’s recommendations. These changes will have a flow-on effect to the FRC, as it will change its role and responsibilities in relation to the Boards, from an approval role to a monitoring role. These changes are expected to take effect from 1 July 2008.

I would like to welcome the new FRC Secretary, Ms Suzanne Howarth, who leads a new team in the FRC Secretariat. I look forward to working with her in the new year.

Given that my appointment as the FRC Chairman ends in December 2007, I would like to take the opportunity to thank my past and current colleagues, stakeholders and FRC Secretariat staff for all their hard work and support during my eight-year tenure as a FRC member, including nearly five years as the FRC Chairman.

SIGNED

Charles Macek
Chairman of the Financial Reporting Counci
15 October 2007

 

Financial Reporting Council governance

Establishment, functions and powers

The Financial Reporting Council is a statutory body under the Australian Securities and Investments Commission Act 2001. The Government’s Corporate Law Economic Reform Programme (Audit Reform and Corporate Disclosure) Act 2004 amended the ASIC Act and expanded the functions of the FRC, which is now responsible for providing broad oversight of the process for setting both accounting and auditing standards as well as monitoring the effectiveness of auditor independence requirements in Australia and giving the Minister reports and advice on these matters.

Specific accounting and auditing standard setting functions for which the FRC is responsible include:

• appointing the members of the AASB and AUASB (other than the Chairs, who are appointed by the Treasurer);
• approving and monitoring the AASB’s and AUASB’s priorities, business plans, budgets and staffing arrangements (including level, structure and composition of staffing);
• determining the AASB’s and AUASB’s broad strategic directions;
• giving the AASB and AUASB directions, advice or feedback on matters of general policy and on the AASB’s and AUASB’s procedures;
• furthering the development of single sets of accounting and auditing standards for world wide-use with appropriate regard to international developments;
• promoting the continued adoption of international best practice in the Australian accounting and auditing standard setting processes if doing so would be in the best interests of both the private and public sectors in the Australian economy;
• monitoring:
  • the development of international accounting and auditing standards and the accounting and auditing standards that apply in major international financial centres;
  • the operation of accounting and auditing standards to assess their continued relevance and their effectiveness in achieving their objectives in respect of both the private and public sectors of the Australian economy and the effectiveness of the consultative arrangements used by the AASB and AUASB; and
• monitoring and periodically reviewing the level of funding, and the funding arrangements for the AASB and AUASB and seeking contributions towards the costs of the Australian accounting and auditing standard setting processes.

Specific auditor independence functions for which the FRC is responsible include:

• monitoring and assessing the nature, overall adequacy and effectiveness of:
  • the systems and processes used by Australian auditors to ensure compliance with auditor independence requirements;
  • the systems and processes used by professional accounting bodies for planning and performing quality assurance reviews of audit work undertaken by Australian auditors to the extent to which those reviews relate to auditor independence requirements;
  • the action that Australian auditors who have been subject to such quality assurance reviews have taken in response to the reports prepared as a result of those reviews;
  • the action taken by professional accounting bodies to ensure that Australian auditors who have been subject to such quality assurance reviews respond appropriately to the reports prepared as a result of those reviews; and
  • the investigation and disciplinary procedures of professional accounting bodies as those procedures apply to Australian auditors.
• monitoring the overall compliance by companies, registered schemes and disclosing entities with the audit-related disclosure requirements of the Corporations Act and the accounting and auditing standards;
• giving the Minister and the professional accounting bodies reports and advice on the above matters;
• monitoring international developments in auditor independence, assessing the adequacy of the Australian auditor independence requirements in the light of those developments and giving the Minister, and professional accounting bodies, reports and advice on any additional measures needed to enhance the independence of Australian auditors; and
• promoting, and monitoring the adequacy of, the teaching of professional and business ethics by, or on behalf of, professional accounting bodies to the extent to which the teaching of those subjects relates to auditor independence.

The FRC operates within a framework set out in the ASIC Act. The Act sets out core objectives for accounting and auditing standards setting in Australia.

• Accounting standards should facilitate the Australian economy by reducing the cost of capital and enabling Australian entities to compete effectively overseas, and should maintain investor confidence in the Australian economy, including its capital markets.
• Accounting and auditing standards should facilitate the Australian economy by having accounting and auditing standards that are clearly stated and easy to understand.

The ASIC Act expressly limits the FRC’s ability to become involved in the technical deliberations of the AASB and AUASB. It provides that the FRC does not have power to direct the AASB or AUASB in relation to the development, or making, of a particular standard, or to veto a standard formulated or recommended by the AASB or AUASB. This provision is designed to ensure the independence of the standard setters.

The Uhrig’s Review recommendations

As part of the Review of the Corporate Governance of Statutory Authorities and Office Holders (the Uhrig Review), the Government has agreed that the AASB and the AUASB be brought within the Financial Management and Accountability Act 1997 (the FMA Act) framework. The new framework will impact primarily on the governance aspects of the two Boards. The current statutory functions of the two Boards in relation to setting Australia’s accounting and auditing standards will remain unchanged.

The important role performed by the FRC with respect to strategic oversight of the two Boards will also continue. The proposed changes to the structural and governance arrangements are expected to be introduced into Parliament in the first half of 2008 with a proposed commencement date of 1 July 2008.

Membership and meetings

Under section 235A of the ASIC Act, the members of the FRC are appointed by the Treasurer and hold office on terms and conditions determined by the Treasurer. Most members of the FRC have been appointed on the basis of nominations put forward by key stakeholder groups.

A full list of members during 2006-07, and the stakeholders who nominated them, is in Appendix A. As members are now able to appoint proxies on a meeting-by-meeting basis, therefore, no alternate members were appointed in 2006-07. The terms of alternate members have now all expired and there are no longer any alternate members.

Operations and activities

Appointments to the Australian Accounting Standards Board and Auditing and Assurance Standards Board

The Nominations Committee is responsible for recommending appointments to the AASB and AUASB. In making recommendations, the Committee reviews written applications, interviews candidates, and takes into consideration the past performance and future needs of the two Boards. The Committee is also given other tasks from time to time; for example, in 2006-07, the Committee provided oversight of the FRC’s performance assessment.

In 2006-07, Mr Klaus Zimmermann was appointed Chairman of the Nominations Committee. The other members of the Nominations Committee were the FRC Chairman, Mr Charles Macek, Mr Don Challen, Ms Jan West, Ms Kathryn Campbell and Mr Mark Coughlin. The Nominations Committee formally met three times during the year. In addition, the Committee met over two days in September and again in November to conduct interviews for appointments to the AASB and AUASB.

The FRC appointed Ms Sue Highland and Mr Brett Rix as new AASB members; and reappointed Ms Kris Peach, Mr Brett Kaufman and Ms Joanna Perry to the AASB.

The FRC reappointed Ms Dianne Azoor Hughes and Mr Clive Mottershead as AUASB members. There were no new appointments or resignations.

Overseeing the Australian Accounting Standards Board and Auditing and Assurance Standards Board

The FRC’s responsibilities include reviewing and approving the AASB’s and AUASB’s priorities, business plan, budget and staffing arrangements.

During 2006-07, the FRC Finance Committee, meeting as the AASB Audit Committee and the AUASB Audit Committee, undertook the detailed reviewing of the budgets, business plans and work programmes of the two Boards. Further information on the work programme for the AASB is contained in Appendix E. Further information on the work programme for the AUASB is contained in Appendix F.

The Chairmen of both the AASB and AUASB provided updates on the operations, including staffing matters, at each meeting of the FRC.

Audit independence

Under amendments made to the ASIC Act by the CLERP 9 legislation, the FRC has responsibility for monitoring the effectiveness of auditor independence requirements in Australia and giving the Minister reports and advice about those requirements.

A detailed report on the FRC’s performance of the auditor independence functions has been prepared separately from this Annual Report.

Communication and consultation

The FRC regularly issues bulletins that communicate decisions taken at its meetings and other important developments in accounting and auditing standard setting. These bulletins are available on the FRC website www.frc.gov.au.

During the year, FRC Chairman Mr Charles Macek and other members of the FRC consulted with representatives of corporations, business organisations, other stakeholder bodies and accounting and auditing organisations. The FRC Chairman travelled overseas and consulted widely with executives from corporate and accounting bodies on matters relating to international accounting and auditing standards, developments in respect of accounting and auditing standards, and matters regarding auditor independence.

Financial Reporting Council consultants

During 2006-07, Mr William Bartlett continued to assist the FRC in the performance of the auditor independence functions conferred on the Council by the CLERP 9 legislation. Mr Bartlett, a retired partner of accounting firm Ernst & Young, was initially appointed in December 2004.

During the period under review the three consultants engaged during 2005‑06, to examine issues associated with quality review programmes and disciplinary procedures of the professional accounting bodies and the teaching of professional and business ethics by, or on behalf of, those bodies, presented their reports to the FRC. Subsequently, as part of the FRC’s 2006-07 work programme, two additional consultants were engaged to examine issues arising from the work of the earlier consultants.

Finances

The 2003-04, 2004-05 and 2006-07 Australian Government Budgets each contained measures designed to strengthen the financial position of the FRC and the standard setting bodies it oversees. In brief, these measures were:

• the 2003-04 Budget provided $4 million over four years to support the expanded functions of the FRC under the CLERP 9 reforms;
• the 2004-05 Budget provided an additional $3.4 million to assist with the implementation of the expanded role of the FRC under CLERP 9, including the reconstitution of the Auditing and Assurance Standards Board, and for the establishment of the Financial Reporting Panel; and
• the 2006-07 Budget provided funding of $19.2 million over four years to support the FRC in its expanded role of overseeing auditor independence and audit standards setting arrangements and for the continuation of the Financial Reporting Panel (which does not fall under the oversight of the FRC).

Total Australian Government funding provided to the FRC through Treasury (including funding of $1 million per annum for the Financial Reporting Panel) is $5.8 million in 2006-07.

The States and Territories provided $0.5 million in 2006-07 and have committed to funding at the same level through to 2009-10.

In 2006-07, the professional accounting bodies provided contributions totalling $1.5 million. CPA Australia and The Institute of Chartered Accountants in Australia (ICAA) contributed $607,500 each while the National Institute of Accountants contributed $285,000. The professional bodies have advised that their combined funding commitment would fall to $1.25 million in 2007-08, $1.0 million in 2008-09, and $0.9 million in 2009-10. The rationale given for this reduction in funding is that the professional bodies themselves require increased resources to address obligations stemming from their membership of IFAC, including enhanced requirements in respect of quality control and disciplinary areas. In addition the professional accounting bodies are funding the newly established Accounting Professional and Ethical Standards Board.

In view of the funding from Australian Government sources, the FRC no longer seeks voluntary contributions from the business community. Due to the importance of financial reporting matters to listed companies, the ASX continues to provide an annual grant to the standard setting bodies.

During 2006-07 the FRC approved payments to the IASCF totalling $1 million. This amount was finalised following agreement between the AASB and the IASCF concerning access to IASCF publications that supplement the IFRS‑based standards. The IASCF is currently reviewing its funding model, which may have implications for the level of contribution expected from Australian bodies in the future.

As noted above, in 2006-07 the Government provided $4.8 million to support the role of the FRC and to contribute towards the activities of the bodies it oversees (excluding the $1 million set aside for the Financial Reporting Panel). In 2006-07, a total of $2,284,897 of the FRC’s own expenditure was paid by Treasury out of this appropriation. This consisted of:

• $1,000,000 of IASCF contributions in 2006;
• $573,998 in staffing costs;
• $326,210 on consultants;
• $82,655 on the Chairman’s salary (including superannuation);
• $45,489 in sitting fees for FRC members (other than the Chairman), including sitting fees for attendance at Committee meetings;
• $192,000 on travel; and
• $95,053 on overheads.

The 2006-07 appropriation from the Australian Government was also used to supplement the funding of the AASB and AUASB (as noted in the 2006-07 financial reports of the AASB and AUASB, which appear in Part 5 of this document).

Freedom of information

The FRC Secretariat, on behalf of the FRC, maintains possession of the following documents:

• FRC meeting agenda papers;
• administrative and technical papers concerning the FRC’s functions and its performance in regard to those functions;
• copies of minutes and bulletins issued by the FRC; and
• correspondence between the FRC, stakeholder groups and members of the public.

Requests under the Freedom of Information Act 1982 for access to documents in the possession of the FRC can be directed to the FRC Secretariat at the contact details below.

No applications under the Freedom of Information Act 1982 were received by the FRC in 2006-07.

Contacting the Financial Reporting Council

Post:	Secretary Financial Reporting Council c/- The Treasury Langton Crescent PARKES ACT 2600
Telephone:	(02) 6263 3144
Facsimile:	(02) 6263 2770
E-mail:	frcsecretary@treasury.gov.au