Each month, this section highlights the latest developments in:
Changes to prudential regulation
Legislation designed to cut red tape in the financial services sector by streamlining prudential regulation was introduced into Parliament on 21 June 2007.
New thresholds for proprietary companies effective this financial year
The Corporations Legislation Amendment (Simpler Regulatory System) Bill (2007) and accompanying bills, were given royal assent on 28 June 2007.
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
Financial reporting by unlisted public companies
Federal Treasury has issued a discussion paper entitled Financial reporting by unlisted public companies to review and ensure that costs incurred by unlisted public companies in preparing financial information do not outweigh the benefits to stakeholders using the information.
To assist CPA Australia develop its submission, members are invited to comment on 13 specific questions labelled A to M in the discussion paper, by emailing CPA Australia.
This article appeared in CPA Update 20 June 2007.
Proposed differential reporting regime and insurance contracts
The Australian Accounting Standards Board (AASB) has issued two Invitation to comment documents which could change the accounting of a reporting entity. The two documents are entitled ITC 12 Request for comment on a proposed revised differential reporting regime for Australia and IASB Exposure draft of a proposed IFRS for small and medium-sized entities and ITC 13 Request for comment on IASB discussion paper Preliminary views on insurance contracts.
To assist CPA Australia develop its submission, members are invited to comment by emailing CPA Australia.
This article appeared in CPA Update on 20 June 2007.
Early adoption opportunity issued by the AASB
The Australian accounting standard setter has provided 30 June 2007 annual general purpose financial reporters the opportunity to early adopt a number of accounting treatments.
CPA Australia has developed a table to assist Australian reporters to decide whether to take advantage of early adoption.
The development of professional standards
Since the release of APES 110 Code of ethics for professional accountants, APES 320 Quality control for firms and APES 410 Conformity with auditing and assurance standards and its operation from 1 July 2006, the Accounting Professional & Ethical Standards Board has continued with its work program to review and reissue standards.
There are no audit and assurance articles this month.
Review of sanctions for breaches of corporate law
The Federal Treasury is currently undertaking a review of the civil and criminal sanctions in the Corporations Act (2001) and the Australian Securities and Investments Commission Act (2001). CPA Australia has made a detailed submission to Treasury on behalf of members.
In particular, CPA Australia has rejected the proposed introduction of a general defence on the grounds that it would add little value to promoting responsible risk-taking and could potentially create uncertainty around the present structure of directors powers and duties.
This article appeared in CPA Update on 13 June 2007.
Companies looking for solid reasons to engage with community
Before engaging in any kind of community involvement, a quarter of firms now require a solid business case with which to focus their investment, a report from the Australian Centre for Corporate and Public Affairs in conjunction with the Business Council of Australia says.
However, almost half of all companies now set aside a specific budget for community investment, the Corporate community investment in Australia report says
This article appeared in CPA Update on 20 June 2007.
