With December 31 financial year end reports coming out from the first companies in just 3 weeks, ASIC rushed out a class order to ensure that companies did not have to report in multiple places and different formats on director and executive disclosures.  To view the press release on this Class Order, click HERE.

ASIC “Class Order [CO 06/50] Transfer of remuneration information into directors’ report” will apply to listed companies preparing financial reports under Chapter 2M of the Corporations Act (the Act).

The class order will allow listed companies to transfer remuneration information required to be disclosed in the financial report under accounting standard AASB 124 Related Party Disclosures into the directors’ report. This will enable listed companies to combine the remuneration disclosures required by accounting standards with those already required to be included in the directors’ report under s.300A of the Act.

Companies will be able to reduce the duplication of remuneration information between the directors’ report and the financial report, and present the information in a manner that is more convenient to users of their annual reports.

But, as mentioned above, ASIC provides the caveat that complying with the lesser requirements of the new accounting standard may not be enough to comply with the intent of Section 2M.3.03 of Corporations Law.

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