ASIC class order relief reflects new thresholds ASIC Class order [CO 07/0505] Variation and revocation of financial reporting instruments amends the relief in existing class orders to reflect recent changes to the large/small test which is the basis for determining which proprietary companies are required to prepare and lodge financial reports under the Corporations Act (2001).
Resulting from legislative changes made by the Corporations Legislation Amendment (Simpler Regulatory System) Act (2007), Class order [CO 07/0505] revised the size test for financial reporting by proprietary companies for the following instruments: Class order [CO 98/0096] Synchronisation of financial year with foreign parent company; Class order [CO 98/0098] Small proprietary companies which are controlled by a foreign company but which are not part of a large group; and Class order [CO 02/1432] Registered foreign companies financial reporting requirements.
This article appeared in CPA Update on 25 July 2007.
Tell us your view on differential reporting A single question survey was developed to inform CPA Australia of when you believe a proprietary company is important from a public interest perspective.
The Australian Accounting Standards Board (AASB) is proposing to base differential reporting primarily on the concept of public accountability. Most proprietary companies would not be publicly accountable, but some may be important because of their market leadership position.
The AASB is proposing a size threshold to determine the category of important proprietary companies which will be required to report in accordance with AIFRS, along with all publicly accountable entities.
The survey contains one question and will only take one to two minutes to complete. However, if you have previously responded to this question published in CPA Update edition 27 dated 18 July 2007, please do not repeat your response.
The changes include amendments to facilitate distribution of annual reports over the internet, and to increase the monetary thresholds to define a large proprietary company. These particular changes apply immediately, so they affect financial reports relating to the 2006-07 reporting period ending on 30 June 2007.
The Simpler Regulatory System Bill was devised by the Australian Government to reduce red tape in the corporate community and financial services sector
This article appeared in CPA Update on 4 July 2007.
Accounting bodies on the objective of financial reporting The European Financial Reporting Advisory Group (EFRAG), the UK standard setter, the Accounting Standards Board (ASB) and a number of European accounting standard setters have recently published a combined paper arguing that 'stewardship' should be formally classified as a separate objective of financial reporting.
Acknowledging the objective separately, the paper argues, would ensure that there is appropriate attention given to company performance as a whole and not just on potential future cash flows.
This article appeared in CPA Update on 11 July 2007.
Insurance roundtables discussion notes available The Australian Accounting Standards Board's (AASB) insurance roundtables were held in Sydney and Melbourne on 7 and 8 June. Discussion focused upon specific insurance industry matters including the current exit value model, measurement attribute, entity specific cash flows, risk margins, and future premiums and acquisitions costs.
Published notes of the roundtable discussion are available on the AASB website.
This summary appeared in CPA Update on 11 July 2007.
Standard setter seeks input on differential reporting The Australian Accounting Standards Board (AASB) will be conducting two roundtables in Melbourne and Sydney on 16 August 2007 and 24 August 2007 respectively. The two roundtables will focus on issues raised in ITC 12 Request to comment on a proposed revised differential reporting regime for Australia and IASB Exposure draft of a proposed IFRS for small and medium-sized entities.
The purpose of the roundtables is to promote communication that will assist the AASB in their deliberations on the differential reporting regime for Australia. Members who are planning to attend the roundtable must register with the AASB as advised in the invitation.
For further information, or to view the invitation, visit the AASBs website.
Appointment of chairperson to the APESB The Accounting Professional & Ethical Standards Board (APESB) announced on Tuesday 24 July the appointment of Ms Kate Spargo as chairperson for a period of three years.
Ms Spargo is a non-executive director of IOOF Holdings Ltd, Transfield Services Infrastructure Ltd, Pacific Hydro Pty Ltd, Investec Bank (Australia) Ltd, Coinvest Ltd and NeuroSciences Victoria. In addition to the board of director positions, Ms Spargo is a councillor for the Victorian Division of the Australian Institute of Company Directors.
To view the media release, please visit the APESBs website.
Comment on proposed code of ethics amendments The International Ethics Standards Board for Accountants (IESBA) has recently issued an exposure draft proposing amendments to existing independence requirements in the Code of Ethics for Professional Accountants.
CPA Australia is calling for members to comment on the proposed amendments.
New standards needed for emissions trading CPA Australia chief executive Geoff Rankin is calling for development of new accounting standards to begin immediately in readiness for the introduction of an emissions trading scheme in Australia.
Before an emissions trading scheme can become operational in Australia, a workable assurance framework must be established. Without an appropriate framework and well-trained practitioners, the reliability of data will be seriously undermined, putting the scheme in jeopardy, he said.
This article appeared in CPA Update on 25 July 2007.
Release of AUASB assurances framework, standard and guidances The Auditing and Assurance Standards Board (AUASB) has recently announced the release of: Framework for assurance engagements; Standard on assurance engagements (the framework); ASAE 3000 Assurance engagements other than audits or reviews of historical financial information; Guidance statements GS 001 Concise financial reports; Guidance statements GS 002 Special considerations in the audit of risk management requirements for registrable superannuation entities and licensees.
Members are invited to comment on the recent releases.
ASX revised principles and recommendations launch date The Australian Stock Exchange (ASX) Corporate Governance Council's revised Corporate governance principles and recommendations will be released on Thursday 2 August. The new principles document will be available on the ASX website from Thursday. The Hon. Chris Pearce, parliamentary secretary to the treasurer, will formally launch the revised principles in Sydney.
For more information please visit the ASX website.
