FRC Feedback to the AASB on its Proposed New Interpretations Model
Text of the letter sent on 28 March 2006 by the FRC Chairman to the AASB Chairman, providing feedback on the AASB proposed new interpretations model:
I am writing to provide you with FRC's feedback on the proposed new interpretations model by the AASB.
The FRC's predominant criterion in assessing the proposed model is ensuring that adequate consideration has been taken of the public interest. That is why rather than putting up a submission, the Council requested to be briefed on the consultations undertaken by the AASB on its proposal and on its reactions to the comments received. In this respect, we are pleased that the AASB has consulted widely with stakeholders and that the proposed model incorporates a number of suggestions made by respondents to its Invitation to Comment.
We note that some stakeholders remain concerned on the potential lack of representation from preparers and user groups with practical experience in dealing with the issues subject to interpretation. In the interest of transparency, we encourage you to consider having a public list of people with appropriate skills and experience in the different subject areas, from which the AASB would draw upon for the selection of the advisory panels (this list could be updated on an as needed basis). Related to this, we also see merit in the proposal to guarantee a minimum presence of experienced preparers and users in each of the advisory panels.
Overall, the FRC is satisfied with the process followed and, on receipt of a satisfactory response to the comments contained in this letter, I am authorised by the FRC to endorse the proposed interpretations model.
Yours sincerely
Charles Macek
Chairman