NSW Audit Office - Awareness - Issue 2005 04 - May 2005

The Audit Office Of New South Wales

Informations

• Publié par: Zyof
• Nombre de lectures: 13
• Langue: English

Extrait

AWARENESS
Accounting and Auditing Developments ISSUE 4 - MAY 2005
AUDIT OFFICE 1 AUDIT OFFICE UPDATE
UPDATE
AUSTRALIAN 2 Performance Audit Report
ACCOUNTING
STANDARDS BOARD Department of Environment & Conservation: Managing
UPDATE
Air Quality
ACCOUNTING 4
Background UPDATE
This audit examined the NSW Government’s efforts to improve air AUDITING 5
quality. In particular, we reviewed the Government’s efforts to curb UPDATE
motor vehicle usage, encourage greater use of public transport,
INTERNATIONAL 6promote cleaner cars and fuels, and integrate air quality in transport
UPDATEplanning.
OTHER ISSUES 7
Audit Opinion
MISCELLANEOUS 9NSW has made significant progress in controlling certain air pollutants
PUBLICATIONSand has met four of the key national goals for air quality ahead of
target. It is not likely, however, to meet the other two in the short
TREASURY UPDATE 10
term. They are the ozone and particles goals. Both are important, but
the ozone goal is the bigger challenge for NSW. PREMIER’S 11
DEPARTMENTVehicles and fuels are increasingly more efficient and cleaner but this
UPDATE
will not be enough to meet the ozone goal without reducing private
car use. The Government is not succeeding in encouraging people to AUDIT OFFICE 12
reduce their reliance on cars and promoting greater use of public BETTER PRACTICE
transport. Private car use in NSW is growing faster than population. GUIDES
We are also building more roads, but many of the major rail projects
in Action for Transport have not proceeded.
Transport planning and assessment instruments need to influence these
trends in travel. Incentives to encourage people to use less polluting
cars are yet to be implemented, and local councils need more support
for their role in reducing pollution.
Air quality cuts across government structures. No single NSW agency
has responsibility and accountability for improving air quality. The
case of air quality in road tunnels was one example used in the report
to illustrate the complexities involved.
Current inter-agency mechanisms need to be strengthened to drive
implementation of strategies and achievement of results. While the
Awareness is published by The Audit Office of New South Wales, Level 15, 1 Margaret Street
Sydney NSW 2000, GPO Box 12, Sydney NSW 2001 Telephone [phone] Fax [phone]
Email [e-mail] Website www.audit.nsw.gov.au
CONTENTSDepartment of Environment and Conservation (DEC) is responsible for monitoring
air quality, it is not resourced or empowered to assure implementation, or to have
a strong influence on transport planning. The DEC will need to continue exploring
cooperative mechanisms with other key agencies.
Further Information
Sean Crumlin, Director, Performance Audit on 02 92757286 or sean.crumlin@audit.n
sw.gov.au.
The full report is available from our Internet site: http://www.audit.nsw.gov.au/
perfaud-rep/Year-2004-2005/AirQuality-April2005/Airquality-contents.html
AUSTRALIAN ACCOUNTING STANDARDS BOARD
(AASB) UPDATE MEETING 13-14 APRIL 2005
The AASB discussed the following matters:
UIG Interpretations Approved
The Board approved UIG Interpretation 1013 ‘Consolidated Financial Reports in
relation to Pre-Date-of-Transition Stapling Arrangements’. The interpretation
applies to annual reporting periods ending on or after 31 December 2005 but may
be applied to annual reporting periods beginning on or after 1 January 2005 and
ending before 31 December 2005.
Financial Instruments – Cash Flow Hedge Accounting of Forecast
Intragroup Transactions
The Board reviewed amendments to AASB 139 ‘Financial Instruments: recognition
and measurement’ and now expects to make an amending standard at its May
2005 meeting. Where a group prepares consolidated financial statements, the
amendment will allow a highly probable forecast external transaction to be
designated as a hedged item, if that transaction gives rise to an exposure that will
have an effect on the consolidated profit or loss. The proposed application date
will be annual reporting periods commencing on or after 1 January 2006 and early
adoption will be permitted.
Reporting by Local Governments
The Board continued its consideration of the responses to ED 125 ‘Financial
Reporting by Local Governments’. The Board decided that, apart from minor
amendments, some to ensure consistency with IFRS, the following proposals in
ED125 should be retained:
restructuring of local governments
2 The Audit Office of New South Wales measurement of previously contributed or acquired assets
restricted assets
non-compliance.
The Board has now completed its review of respondent comments on ED125 and
will consider a draft revised AAS27 ‘Financial Reporting by Local Governments’ at a
future meeting.
Insurance (Liability Adequacy Test)
The Board considered submissions on its Invitation to Comment Liability Adequacy
Test in AASB1023 ‘General Insurance Contracts’ and decided to:
proceed with option 4 outlined in the Invitation to Comment - permitting
general insurers to adopt different probabilities of adequacy in determining the
outstanding claims liability and liability for future claims
not carry forward the “guidance” in the Preface to the Invitation to Comment
that an entity would be expected to have the same or similar probabilities of
adequacy for its outstanding claims liability and liability for future claims where
it has consistent quality of data across its classes of business and not provide an
example of when they might be different
proceed with the proposed disclosures relating to the liability adequacy test in
relation to deficiencies, but not to require any specific disclosures when there
is a surplus
proceed with the proposal to require the calculation of the liability adequacy
test to be performed at a whole of entity level.
The Board expects to make a revised AASB 1023 at its May 2005 meeting.
Concise Financial Reports
The Board considered submissions received in response to ED138 ‘Concise Financial
Reports: Revisions to AASB1039’. It was clear respondents generally disagreed with
the proposals in respect of disclosures to be required in the first year an entity
applies the Australian Equivalents to IFRS’s. Accordingly, the Board has decided to
require a summary of the AEIFRS reconciliation information in the concise financial
report, and a note directing users where to find additional IFRS information in the
full financial report.
The Board made the Standard to supersede the existing AASB1039; it will apply to
annual reporting periods ending on or after 31 December 2005.
Key changes to the existing Standard include the addition of the statement of
changes in equity (or statement of recognised income and expense) as required by
AASB101 ‘Presentation of Financial Statements’ and disclosure of the presentation
currency.
3The Audit Office of New South WalesGAAP/GFS Convergence
The Board reviewed Appendix C to the draft ED ‘Financial Reporting of General
Government Sectors by Governments’. Appendix C is an illustration of one way in
which the proposals might be implemented. Several changes have been proposed
to the draft of the Appendix C.
The Board also continued its review of the draft ED, fine-tuning various aspects of
paragraphs 1 to 25. A significant change to the draft relates to the deletion of the
section dealing with land under roads. A decision was made to effectively replace
it with an ED proposing amendments to AASB116 ‘Property, Plant & Equipment’.
The Board will consider the remaining paragraphs of the draft ED, Appendices A &
B, and the Preface at its next meeting.
Sources: AASB Action Alert No 83 (April 2005), ICAA Accounting and Auditing News
Today (ANT) Edition 15, 12 April 2005 & Edition 16, 29 April 2005.
ACCOUNTING UPDATE
IR 05-16 ASIC Guidance on disclosing the impact of IFRS for full
year financial reports
ASIC has outlined its expectations about the nature and extent of disclosure
required under AASB1047 ‘Disclosing the Impacts of Adopting Australian Equivalents
to International Financial Reporting’ for 30 June 2005 annual financial reports.
ASIC’s Chief Accountant, Mr Greg Pound, has stated: “…we would expect that most
entities will now be able to disclose the quantified impact of the changes…[and
that]…entities should be in a position to produce reliable information for reporting
under AASB 1047.”
ASIC is of the view that disclosures under AASB1047 do not fall within the AUS 702
requirements for use of an emphasis of matter relating to an inherent uncertainty
merely because an accounting standard or the interpretation of that standard may
change prior to the preparation of the first IFRS financial report, or because the
entity may choose to apply a different option under the standard.
The full information release is available at: www.asic.gov.au.
4 The Audit Office of New South WalesAUDITING UPDATE
Financial Reporting Council (FRC) resolution in respect of the
strategic direction of the AUASB
At the FRC meeting on 4 April 2005 the Chairman of the AUASB noted the problems
arising from the need to issue Auditing & Assurance Standards (AUSs) ahead of the
re-write of