Edible Landscaping: Luscious Spring Fruits

Question time

Intheblack July 1, 2004 | Anonymous Queries on international accounting standards and company disclosure laid to rest QUESTION What does the adoption of the International Accounting Standards Board pronouncements mean for the Urgent Issues Group abstracts in Australia?

* The UIG abstracts are in the process of being changed or extended to adopt the IASB’s interpretations effective at 1 January 2005.

The UIG is therefore working towards the adoption of abstracts corresponding to the IASB interpretations originated by the International Financial Reporting Interpretations Committee (IFRIC) or the former Standing Interpretations Committee (SIC).

UIG abstracts that specifically address domestic issues are being revised to ensure consistency with the Australian equivalents to IASB standards and interpretations.

The AASB recently issued pending standard AASB 1048 Interpretation and Application of Standards to provide UIG abstracts with the enhanced status necessary to give them the same standing as IFRIC interpretations.

QUESTION The CLERP 9 Bill introduces a new remedy in the form of an infringement notice to address breaches of the continuous disclosure obligations as set out in the Corporations Act 2001. What is the Australian Securities and Investments Commission’s role in administering the infringement notice? this web site act question of the day

* The infringement notice remedy in what will be Pt 9.4AA of the Corporations Act is contained in CLERP 9 currently before federal parliament and (when Australian CPA went to print) due to be enacted on 1 July 2004.

It is a remedy to address less serious breaches of the continuous disclosure obligations where ASIC will be overseeing the compliance of listed and unlisted disclosing entities with any relevant listing rules.

Companies that do not immediately disclose price-sensitive information to the market, so that it can be provided to investors, breach their continuous disclosure obligations under the Corporations Act.

QUESTION Adopting IASB standards means that we will be adopting the IASB framework. However, the current AASB and IASB definitions are not identical. ED 124 looks at the definition of a ‘reporting entity’. What does the proposed new definition of reporting entity mean for the public sector?

* The IASB’s framework will be adopted, however, the AASB plans to retain the Statements of Accounting Concepts 1 and 2 in some form.

In ED 124 there is an amended definition of ‘reporting entity’ similar to the definition in SAC 1.

ED 124 states a reporting entity is: “An entity in respect of which it is reasonable to expect the existence of users who rely on the entity’s general purpose financial report for information that will be useful to them for making and evaluating decisions about the allocation of resources.” This definition is of particular relevance to public sector organisations since, by their nature, it is reasonable to expect that there will always be users of their financial statements. this web site act question of the day

Under IFRS, public sector entities will continue to be reporting entities and be required to produce financial reports.

QUESTION Where will I find the details of the new accounting standards which have actually been adopted. I don’t want to see the exposure drafts or comments just the ones that have actually been adopted as part of transition to IFRS.

* The AASB has stated that it will not release Australian equivalents to IFRS until later this month.

Even though all pending standards went on the website by 30 June, standards will continue to be made because it will take time to ensure the relevant consequential amendments and cross referencing have been accurately incorporated into the Australian versions of the standards.

However, you are strongly encouraged to become familiar with the pending standards as and when they become available.

[Sidebar] Companies that do not immediately disclose price-sensitive information to the market, so that it can be provided to investors, breach their continuous disclosure obligations under the Corporations Act Anonymous