Trans Tasman Accounting Standards Advisory Group - Minutes

10am, Friday 6 May 2005

AASB Offices, Level 4, 530 Collins Street Melbourne.

Participants:

Jim Murphy (Treasury - Aust) - Chairman
Warwick Hunt (Accounting Standards Review Board (ASRB) - NZ)
Joanna Perry (Financial Reporting Standards Board (FRSB)- NZ)
Professor David Boymal (Australian Accounting Standards Board (AASB))
Greg Larsen (CPA Australia)
Bill Palmer (Institute of Chartered Accountants Australia (ICAA))
Peter Mumford (Ministry of Economic Development MED- NZ)
Geoff Connor (Ministry of Economic Development - NZ)
Kerstin Wijeyewardene (Treasury - Aust)
Amelia Chin (Ministry of Economic Development - NZ)
Peter Taft (Treasury - Aust) by telephone
Stephen Powell (Treasury - Aust) by telephone

Agenda Items

Agenda item 1: Preliminaries

Apologies

Apologies were noted from Charles Macek (Financial Reporting Council Australia) and Patricia McBride (CPA Australia).

Minutes of previous meeting

The minutes of the previous meeting of the Group held in Melbourne on 21 February 2005 had been circulated for comment and, following minor changes, placed on the TransTasman Group web page at the FRC website in March.

Correspondence

A letter was received from Tom Ravlic of the Australian National Institute of Accountants proposing the use of sector neutral accounting standards as a way of ensuring that the accounting frameworks of Australia and New Zealand can converge over the next few years. The Group noted the reply to Mr Ravlic sent by Jim Murphy, in which it was indicated that the FRC would be considering the issues raised later in the year, following the appointment of a consultant on sector neutral standards.

Agenda item 2: MOU/ Draft protocol of co-operation between the AASB and FRSB

In 2004 TTASAG requested the FRSB and AASB to draft a protocol setting out their co operative arrangements. The Boards have now given consideration to a framework for co-operation. TTASAG agreed that the protocol also needed an aspirational statement and that the TTASAG Secretariat would draft this section. The two Boards will draft the operational aspect and both sections would be presented at the next TTASAG meeting.

Agenda item 3: Regional Forum on International Financial Reporting Standards (IFRS)

The meeting discussed the forum programme, invitation list and budget.

Forum programme

Members proposed changes to the draft programme, which will be revised and circulated to members by Australian Treasury by the middle of May.

Invitation list

Responses to invitations to attend the Regional Forum have started coming in. The Australian Treasury and MED will work together and through their overseas diplomatic missions to follow up invitees to encourage attendance and participation at the Regional Forum.

It was agreed that Australian Treasury and MED would produce lists of five business people from each country to be invited to the Forum dinner.

Budget

TTASAG agreed that an offer be made to representatives from Indonesia, Thailand and the Philippines to subsidise attendance at the forum. The total subsidy available would be A$15,000.

Agenda item 4: Review of the New Zealand Financial Reporting Act 1993

MED officials provided a briefing on the institutional arrangements that officials would be recommending to Ministers. Members of TTASAG agreed that these proposals would accord with TTASAG’s harmonisation and cooperation objectives and lead to a closer alignment of the institutional arrangements governing the setting, implementation and enforcement of accounting standards than currently exists.

Agenda item 5: General Business

APFRAG

The Group noted the establishment of CPA Australia’s new Asia Pacific Financial Reporting Advisory Group (APFRAG) to advocate the views of the members of CPA Australia in the region to international standard setters. APFRAG is a committee of CPA Australia and is planning to hold its first meeting in May 2005.

Next meeting

The Group agreed to meet next in the morning of Friday 26 August to coincide with that month’s ASRB meeting in Auckland, New Zealand.

List of Actions

  • A protocol for co-operation between the AASB and FRSB to be drafted and presented at the next meeting (MED, AASB, FRSB).
  • Work to continue on the regional forum on IFRS, including on the programme, invitations to potential speakers and Panel members, and follow-up on invitees who have not yet responded (Treasury and MED).
  • The next meeting to be held in the morning of Friday 26 August to coincide with that month’s ASRB meeting in Auckland, New Zealand (MED).