Business Reporting Leaders Forum · Sydney, CPA Australia on Thursday 1 August 2019 Website: ....

Business Reporting Leaders Forum

Sydney, CPA Australia on Thursday 1 August 2019

Website: www.brlf.net

BRLF welcome and introduction

Nick Ridehalgh, Director, Lead Better Business Reporting and IIRC Ambassador

Agenda (Sydney)

Time Subject Presenter

10.00 Welcome and introduction Nick Ridehalgh

10.05 Remarks from the IIRC Chair, including Q and A Dominic Barton

10.30 IIRC Update / Global developments Liz Prescott

10.40 CRD Better Alignment update Ian Mackintosh

10.50 <IR> Academic Network – activities and overview of latest research

Luckmika Perera

11.05 IAASB Project Update – Guidance on Assurance over Extended External Assurance

Roger Simnett

11.15 NZ Market Update Warren Allen / David Bassett

11.25 Australian developments towards adoption of integrated reporting principles

Michael Bray

11.40 Open discussion Nick Ridehalgh and Michael Bray

12.00 Close Nick Ridehalgh

Remarks from the Chair

Dominic Barton, Chair, IIRC

Journey toward global adoption

Global Adoption Phase

Momentum Phase

Breakthrough Phase

Level of support

and adoption

of integrated reporting

2014-2017 2018-2020 2021-2025

Levelling the playing field before adoption phase

2019 2020 2021 2022

IIRC Global Momentum Phase IIRC Global Adoption Phase

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

USA

China

Germany

South-East Asia

South Africa

UK

Japan

India

Australia

EU – Fra, Netherlands etc

IASB MC PS

IAASB EERAssurance Guide

Evidence-Based Demand Research

Alignment Projects - CRD, McKinsey etc

• September 2019 CRD Report• Does R4.3 make Australia ‘substantively equivalent’?

Strategic questions:• Where will the USA & China be in 2021? Can adoption be claimed before the USA & China are

substantively equivalent?• Is 2021 realistic for adoption phase?• How does this get built into IIRC strategic planning?

IIRC Update/ Global Developments

Liz Prescott, Technical Director, IIRC

© International Integrated Reporting Council

Current adoption

USA

Australia


1. Progress in the adoption of integrated reporting

2. Mobilise the ‘investor pull’ for integrated reporting

3. Alignment of the Corporate Reporting System

4. Make it easier to adopt integrated reporting

5. A supportive policy and regulatory environment

6. Maintain a viable and effective organization

Key themes of the Momentum Phase


Progress in the adoption of integrated reporting

Key objectives: • Grow adoption• Drive momentum in target markets

Progress:

• 89 Business Network participants. • 2019 Report Critique project• Integrated Thinking Special Interest Group - draft strategic model for integrated thinking• IIRC Global conference held in London, May 2019• <IR> Technology Initiative meeting• IIRC Board and Council meetings and roundtable for German business leaders -

Frankfurt, April 2019• Launch of ASEAN Integrated Reporting Committee• Focus on the US and China


Progress in the adoption of integrated reporting

"The disclosure system should evolve to include disclosure

regarding intangible assets, such as intellectual property and

human capital.

Human capital is increasingly conceptualized as an investable

asset. Modernizing the Commission's framework for corporate

reporting generally should reflect these facts, subject to the

standard of materiality.”

Recommendation agreed by the Securities and Exchange Commission (SEC) Investor Advisory Committee, April 2019


Mobilising the investor pull

Key objective: • IIRC to engage in investor initiatives on shifting to the long-term and in sustainable finance

Progress:

• Investigate project opportunities with investor focused organisations eg. PRI, FCLT

• Partnering with the CFA Institute to develop investor training module

• Continue to publicise and add to existing 22 signatories to our Investor Statement


Alignment of the Corporate Reporting System

Key objective: • Corporate Reporting Dialogue focus on ‘alignment’

Progress:• Public consultation on the Better Alignment Project• New website for the Corporate Reporting Dialogue• Second meeting of the IASB Advisory Group to support review of the management commentary

practice statement.• McKinsey review of the corporate reporting landscape• Reporting 3.0 white paper on multi-capitals • Paper on role of reporting in achieving the SDGs with Corporate Reporting Dialogue participants


Easier to adopt

Key objective: • Guidance, research, training

Progress:• Frequently Asked questions on integrated reporting• Practice aid to help organizations navigate the International <IR> Framework requirements• <IR> Framework Panel meetings on 26 February 2019 and 18 June 2019• Forthcoming practice notes on the capitals and on value creation• ‘Getting Started’ guide • Reorganisation of <IR> Examples Database• Currently 15 <IR> Training Partners


A supportive policy and regulatory environment

Key objective: • Securities Market Regulators

Progress:• Maintain momentum for inclusion in Corporate Governance codes • Work with Stock Exchanges to develop guidance• Increase signposting by Securities Market Regulators

– IOSCO Statement, January 2019 • Japanese B20 summit• Participation in GNDI Dubai meetings• Keynote address at the launch of the EFRAG reporting lab


A viable and effective IIRC

Key objective: • A key tool for external trends: SDGs, technological change, purposeful and inclusive capitalism

Progress:

• Maintain and develop convening power of the Council• Continued focus on key relationships to build strong partnerships across the global network• Reinforce relevance of integrated reporting as a key tool for megatrends

CRD Better Alignment Project

Ian Macintosh, Chair, Corporate Reporting Dialogue

All participants of the CRD are committed to driving greater:

• Coherence• Consistency• Comparability

Aims:

• Reduce reporting fatigue • Enable effective reporting• Drive long-term efficient allocation of capital• Align markets with the changing nature of

risks and opportunities.

Find out more by visiting:

www.corporatereportingdialogue.com

Year one:• Global market consultation• ESG / sustainability frameworks mapped against the TCFD recommendations and to each

other• Identify how non-financial metrics relate to financial outcomes and how this can be

integrated in mainstream reports• Public report on potential areas for future alignment

Year two:• Mapping wider ESG / sustainability information between frameworks.

Better Alignment Project aims: Better alignment of the frameworks for ESG / sustainability reporting and a paradigm shift towards the integration of financial and non-financial information.

Map frameworks to other frameworks

Agree on level of alignment between frameworks

Year One Report

Sept 2019

Global multi-stakeholder roundtables

Feedback Analysis

Map frameworks to TCFD recommendations

• Principles• Disclosures• Indicators

Online survey

• Preparers• Users

Year 2 focus Year 2 focus

Global market consultation:

• 250+ stakeholders participated• Online report preparer & user surveys 20 March – 1 May 2019 • Multi-stakeholder roundtables April – June 2019

Africa: South Africa Americas: Colombia, US Asia: Japan, Malaysia Australasia: Australia Europe: France, Italy, Germany, Poland, UK

Key findings - Preparer and user online surveys:

• Majority are reporting on TCFD, TCFD reporting is (to a limited extent) used for investment analysis

• Majority integrate ESG information in a certain manner in the annual report, users link information to financial performance

• In 5 years: broadened scope of ESG information, increasing integration of ESG with financial information and increasing scope of investments integrating ESG expected.

Key findings - Global multi-stakeholder roundtables:

• Relationships, interconnections and alignment between participants’ frameworks and standards are not standards are not well articulated to the market

• Call for ambition to achieve alignment towards a single, all-encompassing framework• Harmonization of participants’ frameworks and standards would be supported by an agreed and shared

agreed and shared language and taxonomy• Market is confused by differing definitions of materiality between the frameworks and standards -

standards - conflict centres around whether ESG reporting should be investor or stakeholder focused

Key findings - Global multi-stakeholder roundtables:

• Growing understanding of financial impact of ESG risks and opportunities calls for more

Project progress update:

• Frameworks are unified on the principles

• Frameworks collectively cover the TCFD disclosure recommendations

• Historical and inherent differences make alignment a long-term process but essential but essential misalignment is expected to be limited

• Alignment opportunities lie beyond framework alignment at organisational level

Key takeaways:

• Confusion extends beyond the global frameworks

• Urgency to resolve the confusion and further align frameworks within CRD

• CRD has started work on further coherence, consistency and comparability

• Better Alignment Project is driving further alignment - starting with recommendationsrecommendations

• Resolving confusion will be a long-term process - focus on communications and content

<IR> Academic Network –activities and overview of latest research

Assoc. Prof. Luckmika Perera, Deakin UIniversity

IIRC Academic Oversight Body Progress

Assoc. Prof. Luckmika Perera

Deakin University CRICOS Provider Code: 00113B

IIRC Academic Oversight Body


Deakin Business School was appointed as the inaugural Chair of the IIRC’s Academic Oversight Body

One of 5 selected to the oversight body, includes University of Ferrara (Italy -Deputy Chair), IIM (India), Pontifical Universidad Javeriana (Colombia) and University of Auckland (New Zealand)

Purpose of the body is to:

Drive academic thought leadership in integrated reporting,

Create the link between industry

Be the voice of academic community in the IR Space

Oversight Body Activities to date (ongoing)


Focus area 1: Facilitate a marketplace to advance research in enhanced corporate reporting and integrated reporting.

Focus area 2: Target major academic conferences to advance the <IR> academic networks’ agenda

Focus area 3: Maintain a public inventory of published research on integrated reporting, systems/integrated thinking and corporate reporting systems reform

Focus area 4: Communicate unpublished papers, including relevant conference papers, working documents and PhD thesis.

Focus area 5: Identify opportunities for other related research collaborations between business and academia and foster effective business-academic links

Focus area 6: Maintain effective lines of communication with key stakeholders

Focus area 7: Develop a roadmap to incorporate IR principles into Finance, Accounting and Business School Curricula

Deakin Centre for Integrated Reporting


Deakin Centre for <IR>


Centre launching 28th October 2019

Deakin Centre for Integrated Reporting– 3 Pillars


Deakin Centre for

<IR>

Education and Training

Research and

Thought Leadership

Engagement

Deakin Centre for Integrated Reporting –Governance


Deakin Centre for

<IR>

Advisory Board

Executive

Research Education Engagement

Industry Academics Funders

<IR> Education and Training

Short Training courses

Undergraduate

Education and Training

AcademicIIRC AccreditedProfessional

Accredited Courses(IIRC Accredited)

Postgraduate

Standalone

Cloud based training

<IR> Research and Thought Leadership

Research Papers Whitepapers

Research and Thought

Leadership

Thought LeadershipResearch

Policy Research

Professional writeups

Professional Consultations

Databases

Engagement

Seminar and Presentations

Industry & Profession

Engagement RelationshipsNetworks

Other events

Governments

Standalone

Conferences

Academics

Community

Cloud based activities


Thank you

IAASB EER Project Update – Guidance on Assurance over Extended External Assurance

Roger Simnett, Chair and CEO, AUASB

© Auditing and Assurance Standards Board 2019

AUASB EER – IAASB Guidance Update

July 2019

Presented by:

Marina Michaelides – MelbourneRoger Simnett - Sydney

Australian Auditing and Assurance Standards Board


Overview IAASB EER Project


Key Timeline

Feb 19: IAASB issues this Consultation Paper on Phase 1

Feedback from both Round Tables and written submissions

AUASB response to this Consultation Paper by 21 June 19

IAASB EER PAP continues its work – drafts Phase 2 – Aus inv

Early 20: IAASB will publish complete Exposure Draft

Late 20: Final Non-Authoritative Guidance will be published

© Auditing and Assurance Standards Board 2018 43

Key themes communicated to IAASB on EER Assurance CP

• Purpose: Clarity of purpose to apply ISAE 3000 (Revised) to a wide range of subject matter.

• ISAE 3000 Requirements and Terminology: Aligns with the requirements and terminology of ISAE 3000 (Revised).

• Target Audience: Clarity of audience, namely assurance practitioners, with useful context relating to Report preparers not moved to the Appendix.

Areas for further consideration by the IAASB:• Maintain Momentum – timing to finalise and issue guidance

• Reporting Frameworks – neutrality but draw on examples from different frameworks

• Examples and Flowcharts:– Themed Examples (case study)– Financial Alongside Non-Financial Examples


Key themes communicated to IAASB EER Assurance CP

• Reasonable versus Limited Assurance – understanding of assurance products in the market is an issue

• Materiality – materiality in scoping, stronger integration of risk into the materiality process. Need to look at more than just impact in materiality determination and links to examples of materiality disclosure from publicly available EERs Reports would add value.

• Qualitative Statements - strong need for guidance in relation to the assurance on subjective statements, i.e. narrative, where evidence requirements may prove challenging to meet.

• Structure of Guidance / Hyperlinks – Sequence of EER Assurance Challenges– Technology solution for useability

• IASB Links: IFRS Practice Statement 1 Management Commentary

• Preconditions: Is the bar too high and links to systems of internal controls?


Next Steps - AUASB

• Survey: Supporting Credibility and Trust in EER: Targeted at the EER practitioners Types of credibility enhancing techniques being used/developed in

market Links to ASAE / ISAE 3000 Cross jurisdictional Co-ordination and analysis by AUASB/Sydney Uni Some feedback to IAASB

Mid August 2019 launch date

IAASB EER Guidance: Review comments on submissions for Sept AUASB BM and Phase 2

progress Review of final guidance before ED at Dec AUASB / IAASB BM Comment on final ED once exposed by IAASB Communicate with Stakeholders when final guidance issued in 2020

Management Commentary –AASB update

© Australian Accounting Standards Board 2019

July 2019Kris Peach, Chair and CEOAustralian Accounting StandardsBoard

2

• What is Management Commentary?• IASB’s approach and inputs considered• Common themes in narrative reporting as per Conceptual

Framework• What would be new in proposed guidance compared to OFR• How can you contribute?• Expected timeline• Q&A


Agenda

3What is Management Commentary?

Wider Corporate Reporting


Financial Reporting

Other Financial Reporting

FinancialStatements

Management Commentary:a narrative report that

provides financial and non-financial information useful to

users of financial reports

Governance reports

Environmental and social impact

4

• APS 1 based on IASB’s Practice Statement 1 Management Commentary

• IASB revising PS1:

Increasing demand from users for non-financial information

Blackrock: need “standardized ESG disclosures within a consistent global reporting framework, similar to international accounting standards”

Financials not explaining enough of market value

Intangibles not on balance sheet

Other external reporting – no frameworks or not consistent with financial statement framework

More countries mandating management commentary

Increase in number entities doing elements integrated reporting


Why talk about management commentary in Australia now?

5IASB’s approach and inputs considered

IFRS Practice Statement 1Management Commentary

(published 2010)

IFRS Practice Statement 2

Making MaterialityJudgements

(published 2017)

Commonthemes in the

current narrative reporting debate

Conceptual Framework for

Financial Reporting

(revised 2018)

Emerging best practice and guidance

in management commentary reporting

in other countries

Looking at four main areas which are in existing APS 1:• business model• financial analysis• non-financial information• forward-looking statements

some enhancements in:• long-term value creation, and

the resources and relationships that support this

• a focus on business model, and the linkage of content across the management commentary

• materiality


6Common themes in narrative reporting as per Conceptual Framework

The objective of financial reporting is to provide information that is useful to primary users of financial reports in making decisions about providing resources to the entity

Information is useful if it possesses two fundamental qualitative characteristics

Information is relevant Information provides faithfulrepresentation

Information is capable of making adifferenceto the decisions made by users

Materiality is an entity-specific aspect ofRelevance

Information is complete

Information is neutral

Information is free from error

Usefulness of information can be enhanced by enhancing qualitative characteristicsVerifiability Timeliness Understandability

Cost constraintComparability

Have regard to all principles, those ticked

considered in more detail

Objective


7What would be new in proposed guidance compared to OFR

Non-Financial InformationNon Financial Information and explanations that provide insight into Business process and implications for future financial performance such as customer wins and retention, product quality measures

Current Year Financial Analysis-Additional/ non-GAAP financial analysis such as comments on organic earnings growth and operational issues

Forward-Looking statementsExplaining statements of forecast and target financial andnon- financial expectations (where made)comparisons of entity’s actual performance to past forecasts and targets included in prior period

Business model, risk, strategy and operating environment.

Qualitative and quantitative information on:•the operational position ofthe business•the factors affecting itsfuture development

+Linkage to governance and remuneration disclosures


8How can you contribute?

• AASB Disclosure Initiative Project Advisory Panel• Influence early - Input on management commentary panel

papers• Management commentary mandatory and auditable

standard in Australia?• ED expected early H2 2020


10Your Presenters


Kris [email protected]

DisclaimerThis presentation provides personal views of the presenter and does not necessarily represent the views of the AASB or other AASB staff. Its contents are for general information only and do not constitute advice.

The AASB expressly disclaims all liability for any loss or damages arising from reliance upon any information in this presentation.

This presentation is not to be reproduced, distributed or referred to in a publicdocument without the express prior approval of AASB staff.

mailto:[email protected]

11Engage with the AASB

Australian Accounting Standards Board Discussion group

@AASBAustralia@krispeachAASB


Keep in touch with the AASB

website: www.aasb.gov.au

e-mail:[email protected]

.au

http://www.aasb.gov.au/

mailto:[email protected]

New Zealand developments towards adoption of integrated reporting principles

Warren Allen, IIRC Ambassador and CEO, NZ External Reporting Board

David Bassett,

New Zealand developments towards adoption of integrated reporting principles

• EER Position Statement

• Navigational resource material

Integrated reporting in Australia –the state of play in 2019

Michael Bray, KPMG Fellow in Integrated Reporting, Deakin University Business Reporting and IIRC Board Member

59© 2019 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International. Liability limited by a scheme approved under Professional Standards Legislation.

Document Classification: KPMG Confidential

What we have heard today

• The IIRC strategic direction and current operations

• Momentum Phase – the current state of <IR> adoption globally

• Important related initiatives

CRD Better Alignment Project

Project status: IASB Management Commentary Practice Statement

& IAASB Extended External Reporting Assurance Guidance

• Pathway from Global Momentum Phase to Global Adoption Phase –

Map

Substantive equivalence

Country adoption templates

• <IR> Academic Network

Australian DevelopmentsAustralian pathway to substantive equivalence and

contribution to widespread global adoption?

• Adoption trends – ‘Phase 2’

• ASX Corporate Governance Recommendation 4.3

• FRC, AASB, AuASB - international projects

• ASIC

• New Zealand

• Adoption map and country adoption template




Global Adoption Phase

Momentum Phase

Breakthrough Phase

Level of support and adoption of integrated reporting

2014-2017 2018-2020 2021-2025

Levelling the Playing Field Before Adoption Phase – where will we be in 2021-25?2019 2020 2021 2022

IIRC Global Momentum Phase IIRC Global Adoption Phase

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

South Africa

UK

Japan

India

Australia

USA

China

Germany

South-East Asia

EU – France, Netherlands etc

IASB MC PS

IAASB EERAssurance Guide


Alignment Projects - CRD, McKinsey etc

Australian Adoption Trends – Stage 2Sector

Big 4 Sectors Financial Services ( eg NAB, Cbus, VicSuper, ANZ)Property (eg Lendlease, Stockland)Energy & Natural ResourcesConsumer & Industrial MarketsOtherGovernmentGovernment Business Enterprises (eg Australia Post)Member Organisations (eg CPA Australia)

Stage 4:• <IRMS>• <Integrated Reporting

Assurance>

2019 KPMG ASX 200 Report:• Further shift to right anticipated• Research underway with Deakin• Interview-based

63© 2018 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 639709

ASX Corporate Governance Principles & Recommendations4th Edition

Elizabeth Johnstone, Chair …

64© 2018 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 639709



Recommendation 4.3

A LISTED ENTITY SHOULD DISCLOSE ITS PROCESS TO VERIFY THE INTEGRITY OF ANY PERIODIC REPORT IT RELEASES TO THE MARKET THAT IS NOT AUDITED OR REVIEWED BY AN EXTERNAL AUDITOR.

COMMENTARY

Increasingly, investors are relying on a broader range of periodic corporate reports than audited or reviewed financial statements to inform their investment decisions. This includes an entity’s annual directors’ reports, quarterly activity reports, quarterly cash flow reports and, in some cases, integrated reports (if prepared as a separate annual review) and sustainability reports.

A ‘corporate report’ is an entity’s annual directors’ report, annual and half yearly financial statements, quarterly activity report, quarterly cash flow report, integrated report, sustainability report, or similar report.

‘Integrated report’ has the meaning given to it in the International <IR> Framework. The principles of integrated reporting can be used in preparing existing reports, for example, the directors’ report or the operating and financial review.

Where a corporate report of this type is not subject to audit or review by an external auditor, it is important that investors understand the process by which the entity has satisfied itself that the report is materially accurate, balanced and provides investors with appropriate information to make informed investment decisions.

This can be disclosed in the report itself or more generally in the entity’s governance disclosures in its annual report or on its website.

RECOMMENDATION 7.4

A listed entity should disclose whether it has any material exposure to environmental or social risks and, if it does, how it manages or intends to manage those risks.

COMMENTARY

To make the disclosures called for under this recommendation does not require a listed entity to publish an “integrated report” or “sustainability report”. However an entity that does publish an integrated report in accordance with the International Integrated Reporting Council’s International <IR> Framework, or a sustainability report in accordance with a recognised international standard, may meet this recommendation simply by cross-referring to that report.



Recommendation 4.3 Adoption Statement Examples - Years Ending 31 December 2019, 31 March 2020, 30 June 2020 & 30 September 2020

PROCESS TO VERIFY THE INTEGRITY OF PERIODIC CORPORATE REPORTS

For reporting periods beginning on or after 1 January 2020, listed entities will be obliged to make disclosures under the 4th Edition of the ASX Corporate Governance Principles & Recommendations, including the new Recommendation 4.3. The entity is presently identifying its Corporate Reports Portfolio which will be subject to Recommendation 4.3 from that date, and assessing and obtaining the relevant assurance and other verification.

A Steering Committee is monitoring the adoption of Recommendation 4.3. The Committee has been following corporate reporting developments, including Recommendation 4.3, such as the forthcoming IASB Management Commentary Practice Statement and IAASB Extended External Assurance Guidance. It is evaluating the likely impact that these developments will have on our investors, customers, employees, regulators and other key stakeholders, and on the consequent impact on our corporate reports.

Dedicated workstreams are responsible for evaluating the impact of specific changes. Each workstream is progressing through multiple phases of work: technical evaluation, design, development and implementation. The Group has largely completed the technical evaluation phase of each workstream, and is moving into design, development and implementation. The program is achieving scheduled milestones.

In future reports, we will identify our Corporate Reports Portfolio, the underlying reporting frameworks, and the processes in place to ensure data integrity. We will also outline how our Corporate Reports Portfolio is subject to various levels of verification, including external assurance.

Our primary corporate report is the Operating & Financial Review (OFR), which is now prepared in accordance with integrated reporting principles. We intend to have the OFR assured by our financial report auditor in future years. We will outline verification processes for other corporate reports in future years. Not all corporate reports will be subject to external assurance.

Recommendation 4.3 Adoption Statement Examples - Years Ending 30 June 2019 & 30 September 2019

PROCESS TO VERIFY THE INTEGRITY OF PERIODIC CORPORATE REPORTS

For reporting periods beginning on or after 1 January 2020, listed entities will be obliged to make disclosures under the 4th Edition of the ASX Corporate Governance Principles & Recommendations, including the new Recommendation 4.3 in relation to corporate reports and their verification. We will describe our response to Recommendation 4.3 in following financial years. We intend to early adopt the recommendation as we believe it represents best practice in corporate governance, and we will explain how we have applied it in future years. A Steering Committee will be appointed to drive this process.



Australian Adoption Pathway

Strategic Implications

‘Green’ possible by December 2020

ASX CG4.3 is a process-based recommendation with assurance implications, so start planning now

Aligning frameworks through CRD etc

Management Commentary Practice Statement and Extended External Reporting Assurance Guidance

Substantive Equivalence?

√ Report purpose Investors, of interest to all stakeholders 0.40

√ Disclosure perspective

Governance – Board of Directors 0.10

√ Report audience Investors, of interest to all stakeholders 0.10

√ Framework approach

Formal recognition of <IR> Framework 0.10

√ Fundamental concepts


√ Guiding Principles


√ Content Elements


√ Other Integrity & credibility – regulatory surveillance & enforcement mechanism (Section 777 of Corporations Act 2001)

√ Overall 1.00

Apr-19 Jun-19 Sep-19 Dec-19 Jun-20 Sep-20 Dec-20 Jun-21 Sep-21 Dec-21 Jun-22 Dec-22 Jun-23 Dec-23IIRC Strategy

ASX CGR 4.3 Process

IASB Mgt Commentary Practice Statement (OFR)

IAASB Extended External Reporting Assurance Guidance

FRC / AASB / AuASB Position

ASIC

CRD / McKinsey Consolidation


DevelopmentEarly AdoptionAdoption

June 2020 will be the turning point:* R4.3 preparation under way* Australia adoption of MC & EERAG?* In-scope for ASIC?* Less framework clutter through CRD

Tipping point reached in mid-2019:* R4.3 issued* Major players in line* IIRC substantive equivalency

Open discussion

Nick Ridehalgh and Michael Bray

BRLF wrap up

John Stanhope (Melbourne)

Nick Ridehalgh (Sydney)

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