The Australian government is adding further regulations for executive pay disclosure, in addition to those we described in December.
But do not panic! The regulations simply replace the same disclosure requirements dropped from the accounting standards.
As announced by the AASB in 2011, most of the provisions relating to individual KMP disclosures contained in paras Aus29.1 to Aus29.9.3 of AASB 124 are to be withdrawn with effect from 1 July 2013 because they duplicate provisions in the Corporations Act and Regulation 2M3.03. The new regulations are simply transferring unduplicated provisions relating to the disclosure of equity holdings and transactions by KMP and their associates from AASB 124 to Regulation 2M3.03 (i.e. paras Aus29.7.3 to Aus29.9.3). These changes mean that AASB 124 will be a more “pure” reflection of the international IAS 24 accounting standard.
The new Corporations Act regulations are in draft form. This is a good thing, because some errors seem to have crept in along the way. Guerdon Associates, and presumably others, will point this out to Treasury before they become law.
In the meantime, you can view the draft regulations (ignore that they are “in confidence” – we assume that this is another drafting error) and explanatory notes HERE.
The amendments to AASB 124 are detailed HERE.
If you have any suggestions, submissions to Treasury are required by 10 May 2013.
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