The Parliamentary Secretary to the Treasurer, David Bradbury, today announced that the Financial Reporting Panel (FRP) will be wound up.
The FRP was established in 2006 to resolve contested issues between the Australian Securities and Investments Commission (ASIC) and reporting entities over the application of accounting standards to financial reports.
"The concept of the FRP as an alternative dispute resolution mechanism was a worthy one, but demand for the mechanism has proven to be too low to justify its continued operation," Mr Bradbury said.
The Government previously announced that it would wind up the FRP in 2010-11 due to lower than expected referral rates. Between 2006, when it was established, and 2010, only one case was referred to the FRP, but the matter was resolved before a determination was made. Four cases were referred to the FRP in August 2010. These referrals led the Government to review whether there was an ongoing role for the FRP but there have been no referrals to the body since that time.
"I would like to thank Mr Ken McKenzie, Chairman of the FRP, and the Panel members for their service on the FRP and their commitment to improving financial reporting in Australia and I am certain that they will continue to make an important contribution to the sector."
Amendments to the Corporations Act 2001 will be introduced into Parliament to give effect to the Government's decision.7 February 2012