FRC update - March 2012 meeting and survey on director financial literacy
Apr 24, 2012
The Australian Financial Reporting Council (FRC) has released the draft minutes of its March meeting and also launched a survey to gain insight into the financial literacy of company directors in Australia and how any perceived gaps in their understanding of financial issues might be addressed.
The minutes of the meeting held on 9 March 2012 cover a diverse range of topics, including:
- the functions and performance of the FRC
- a report from the Australian Accounting Standards Board (AASB), including discussion of the AASB's research into financial reporting by private companies and other non-publicly accountable entities, which "was likely to raise issues concerning policy, enforcement and regulation in respect of financial reporting"
- a report from the Auditing and Assurance Standards Board (AuASB)
- reports from various stakeholders and other participants - of interest are observations from Mr Lucy (a IFRS Foundation Trustee) that there was "a loss of confidence by the investing community overseas in financial reporting, especially in the areas of material financial fraud and valuation issues associated with determining whether an entity is a going concern"
- Task force reports, including from the Integrated Reporting Task Force (IRTF) that "integrated reporting should not be inside the financial report" and for the Public Sector Financial Reporting Task Force (PSFRTF) to "develop ideas about promoting the use of high quality public sector financial reporting standards internationally
The FRC's survey on the financial literacy of company directors in Australia is split into two, one for directors themselves and one for financial professionals. The surveys can be accessed at the following links:
- For directors: www.plenarionlinesurveys.com/asxresearch_0312_Fin_Literacy_Directors.htm
- For financial professionals: www.plenarionlinesurveys.com/asxresearch_0312_Fin_Literacy_Professional.htm