11 March 1996 - 3 December 2007
APPOINTMENTS TO THE FINANCIAL REPORTING COUNCIL AND THE AUSTRALIAN ACCOUNTING STANDARDS BOARD
The Treasurer, the Hon Peter Costello, MP, today announced the appointment of the members of the new Financial Reporting Council (FRC).
The FRC is a key element of the new institutional arrangements for accounting standard setting outlined by the Government in 1997 as part of its Corporate Law Economic Reform Program. Legislation to implement these arrangements was introduced into the Parliament last year following wide public consultation.
The FRC is the peak body responsible for the broad oversight of the accounting standard setting process for the private and public sectors. It comprises key stakeholders from the business community, the professional accounting bodies, governments and regulatory agencies.
Key functions of the FRC are to advise the Government on the accounting standard setting process and the development of international accounting standards, and to determine the broad strategic direction of the standard setter, the Australian Accounting Standards Board (AASB). The FRC will give the AASB directions, advice and feedback on matters of general policy, and will be responsible for approving its priorities, business plan, budget and staffing arrangements. However, the FRC will not be able to influence the AASBs technical deliberations and hence the content of particular accounting standards.
The members of the FRC will be formally appointed for a three year term when the Corporate Law Economic Reform Program Bill 1998 is enacted and comes into effect. In the meantime, the FRC has been appointed on an informal basis so that it can begin the work of establishing the new accounting standard setting arrangements.
The members of the FRC, who will serve part-time, have been selected from panels of names put forward by stakeholder groups.
The Treasurer also announced the appointment of Mr Gregory Ward, Chief Financial Officer, Macquarie Bank Limited, to the existing Australian Accounting Standards Board until 31 December 1999, pending the establishment of the new accounting standard setting arrangements. Under the new arrangements, the FRC will appoint the members of the AASB (with the Treasurer appointing the AASB Chairman).