Model financial statements for Australian 'Reduced Disclosure Requirements' for June 2011
Jun 30, 2011
The Australian Securities & Investments Commission (ASIC) has called for companies to provide more clarity on the remuneration arrangements for their directors and executives.
Under the Australian Corporations Act 2001, listed companies are required to prepare a remuneration report as part of their annual reporting process. ASIC has identified a number of areas where disclosure to shareholders can be improved based on a review of 60 remuneration reports for listed companies for the year ended 30 June 2010.
ASIC notes the following areas where disclosures about remuneration arrangements could be more effective:
- The board's policy on the nature and amount of remuneration of the key management personnel
- The non-financial performance conditions in short-term incentive plans
- Why performance conditions have been chosen
- The terms and conditions of incentive plans.
Click for ASIC press release (link to ASIC website).