NO.017

RECIPROCAL TRANS-TASMAN ACCOUNTING BODIES APPOINTMENTS

The Australian Treasurer, Peter Costello and New Zealand Commerce Minister

Pete Hodgson today jointly announced cross-appointments between the Australian

Financial Reporting Council (FRC) and the New Zealand Accounting Standards Review

Board (ASRB). Charles Macek, Chair of the FRC has been appointed as a member

of the ASRB and Warwick Hunt, Chair of the ASRB has been appointed as a member

of the FRC.

“This is a further step in developing the Single Economic Market agenda”,

Peter Costello said. “New Zealand and Australia are both adopting international

accounting standards. This has increased the need for high levels of coordination

between Australian and New Zealand accounting standards bodies. Among other

things, the FRC and ASRB are responsible for standards setting oversight and

strategy and these cross-appointments will promote higher levels of coordination

and communication in these areas. In particular, it will give us more opportunity

to influence the direction of international standards.”

These appointments have come soon after similar cross-appointments were made

at the standard setting level. David Boymal and Joanna Perry who are, respectively,

the Chairs of the Australian Accounting Standards Board (AASB) and the New Zealand

Financial Reporting Standards Board (FRSB) have also been cross-appointed.

“It is no coincidence that all four cross-appointees are the chairs of

their home bodies”, Pete Hodgson added. “It reflects the importance

that both countries attach to the trans-Tasman relationship and promoting the

objectives of the Single Economic Market.”

Charles Macek

Charles Macek is a company director with more than 30 years experience in the

financial services including insurance, stockbroking, investment management

and investment banking in Australia, New Zealand, the United Kingdom, the United

States and Japan. He has held senior positions and directorships in a range

of public companies. Current directorships include Telstra Corporation Ltd and

Wesfarmers. Charles Macek has been appointed as a member of the ASRB from 21

March 2005 to 10 June 2006; the day his term on the FRC expires.

Warwick Hunt

Warwick Hunt is a Partner and Line of Service Leader in the Assurance and Business

Advisory Services at Pricewaterhouse Coopers. He is also a member of the New

Zealand Management Board for PwC. He is a technical accounting, audit and transaction

service specialist with 20 years experience in leading accounting practices

in New Zealand and South Africa. He specialises in the resolution of complex

commercial, financial reporting; and governance related issues. Warwick Hunt

was appointed as a member of the FRC for three years with effect from 9 February

2005.

BACKGROUND

Appointment Process

The responsible minister in each jurisdiction nominated a member from their

home accounting body for membership of the host country body. Each nominee was

then considered for appointment in accordance with the relevant host country

process.

FRC

The FRC is established under Part 12 of the Australian Securities and Investment

Commission Act 2001. Members are appointed by the Australian Treasurer. There

are no mandatory qualifications for members or legislative limitations on the

number of members. The FRC comprises a Chair and representatives from the business

community, accounting profession and governments.

For further information see www.frc.gov.au

ASRB

The ASRB is a Crown entity established under the Financial Reporting Act 1993.

Its main function is to review and, if it thinks fit, approve any financial

reporting standard or amendment submitted to it. The ASRB consists of not less

than four and not more than seven members appointed by the Governor-General

on the recommendation of the Minister of Commerce. When considering appointments,

the Minister must recommend candidates who have knowledge of, or experience

in, business, accounting, finance, economics or law.

The New Zealand Government is currently reviewing the Financial Reporting Act.

A Ministry of Economic Development discussion document proposes that the ASRB

be replaced with a new body with broader responsibilities.

For further information see www.asrb.co.nz

CANBERRA

16 March 2005

Contact: Amanda Kennedy

02 6277 7340