Latest developments in professional accounting and corporate governance January

New AASB exposure draft ED 160
The Australian Accounting Standards Board (AASB) published ED 160 which incorporates the International Accounting Standards Boards (IASBs) exposure draft of proposed amendments to IFRS 1 First-time adoption of international financial reporting standards and IAS 27 Consolidated and separate financial statements Cost of an investment in a subsidiary.

Members can respond directly to the IASB on the exposure draft via the Open for comment link until Tuesday 26 February.

Red tape burden to be lessened
The first stage of the Federal Governments Standard business reporting program has begun, with tenders being called for the project.

The program will focus on harmonising the definitions, procedures and reporting requirements for information provided to governments.

Business combinations standard revised
The IASB issued a revised version of IFRS 3 Business combinations and an amended version of IAS 27 Consolidated and separate financial statements.

The revised standards will be effective from 1 July 2009, with early adoption permitted.

Invitation to comment: not-for-profit entities
The AASB has issued ITC 14 Proposed definition and guidance for not-for-profit entities for comment.

ITC 14 incorporates materials issued by the New Zealand Financial Reporting Standards Board on public benefit entities, as the convergence policy of both jurisdictions is a priority.

Key decisions at AASB meeting December 2007
At the AASBs last meeting for 2007, new accounting standards and an interpretation were issued, and various significant developmental matters were discussed by the board.

2008 AASB meeting dates
The AASB has changed some of its meeting dates for 2008. The meetings will now be held on:

7 February
5 6 March
17 April
21 22 May
25 26 June
30 31 July
24 25 September
12 13 November
17 18 December

IASB and IFRIC exposure draft and interpretations
The IASB also issued another exposure draft entitled exposure draft of proposed amendments to IFRS 2 Share-based payment and IFRIC 11 IFRS 2 group and treasury share transactions in December 2007.

The International Financial Reporting Interpretations Committee (IFRIC) issued two draft interpretations: D23 Distributions of non-cash assets to owners and D24 Customer contributions.

New standards for public sector entities
The Australian Accounting Standards Board (AASB) recently issued six standards which affect various levels of government and government departments.

The standards are: AASB 1004 Contributions (revised); AASB 1050 Administered items; AASB 1051 Land under roads; AASB 1052 Disaggregated disclosures; AASB 2007-9 Amendments to Australian accounting standards arising from the review of AASs 27, 29 and 31; and AASB interpretation 1038 Contributions by owners made to wholly-owned public sector entities.

IFRIC membership changed
The International Accounting Standards Committee Foundations constitution was amended by the trustees in accordance with their proposal to enlarge the International Financial Reporting Interpretations Committee membership and related requirements.

Suitability of IFRS for SME micro-entities
An information paper investigating the information needs of preparers and users of micro-entity financial reports was released by the International Federation of Accountants.

2008 FRC meetings
The Financial Reporting Council (FRC) will its 2008 meeting on:

12 February (Melbourne)
9 April (Melbourne)
11 June (Canberra)
3 September (Sydney)
26 November (Melbourne)

The FRCs Bulletin 2007/5 17 December 2007, which summarises proceedings of the FRCs meeting on 6 December 2007, is now available on its website.

Ethics and professional standards

Auditor independence and business valuations
The Accounting Professional & Ethical Standards Board (APESB) has issued three new standards that outline the responsibilities of members with regard to preparation of financial statements and communication of the terms of engagement for professional services.

It has also released two exposure drafts on which CPA Australia is seeking members' comments because of their anticipated impact.

Submission on code of ethics
The three major professional accounting bodies have expressed joint support for the APESBs proposal to update the Code of ethics for professional accountants (the code) in relation to auditor independence.

2008 APESB meetings
The APESB will meet four times in 2008. The upcoming meetings will be held on:

12 February(to be held in Sydney)
13 May
12 August
11 November

Meetings are open to the public; however, interested attendees must register their attendance. Registration can be completed on the APESB website.

Audit and assurance

ASIC updates auditors obligations
The Australian Securities and Investments Commission (ASIC) has issued an updated version of regulatory guide 34 Auditors obligations: reporting to ASIC (RG 34).

RG 34 has been updated to include guidance for auditors of Australian Financial Services licensees.

IAASB completes first phase of clarity project
The International Auditing and Assurance Standards Board (IAASB) has released the last two exposure drafts written in accordance with the new clarity drafting conventions.

The two exposure drafts are ISA 210 (redrafted) Agreeing the terms of audit engagements and proposed ISA 710 (redrafted) Comparative information corresponding figures and comparative financial statements.

Newly issued IAASB standards
The IAASB has recently issued several new proposed standards.

2008 IAASB meetings
The IAASB has released its meeting dates for 2008. Public board meetings are scheduled for the following dates:

March 10 14 New York, US
June 16 20 Athens, Greece
September 15 19 Miami, US
December 8 12 Brussels, Belgium

Meeting highlights can be accessed through the IAASB website.

2008 AUASB meetings
The AUASB has released its meeting dates for 2008. Public board meetings are scheduled for:

25 26 February
14 April ( in Sydney)
2 3 June
21 22 July
8 9 September
27 28 October
1 2 December

Meeting highlights can be accessed through the Latest developments in professional accounting and corporate governance sections in CPA Update and on the website.

AICPA commences clarity project
The Auditing Standards Board of the American Institute of Certified Public Accountants (AICPA) has commenced a large-scale clarity project to revise its auditing standards.

The goal is to make the standards easier to read and understand, thereby improving their implementation.

Corporate governance

ASX public consultation
The Australian Securities Exchange (ASX) issued two public consultation papers entitled Omnibus listing rule amendments and Non-voting ordinary shares.

Corporate social responsibility

Raising the bar in 2008
The Australian Centre for Corporate Social Responsibility's annual conference on corporate social responsibility and sustainability is scheduled for Wednesday 20 February in Sydney.

The conference will provide practical insights into the challenges of leading sustainable businesses, including the major international and domestic trends, and policy developments affecting corporate social responsibility.

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