NO.057

The Treasurer, the Hon Peter Costello, MP, today announced the appointment of the

members of the new Financial Reporting Council (FRC).

The FRC is a key element of the new institutional arrangements for accounting standard

setting outlined by the Government in 1997 as part of its Corporate Law Economic Reform

Program. Legislation to implement these arrangements was introduced into the Parliament

last year following wide public consultation.

The FRC is the peak body responsible for the broad oversight of the accounting standard

setting process for the private and public sectors. It comprises key stakeholders from the

business community, the professional accounting bodies, governments and regulatory

agencies.

Key functions of the FRC are to advise the Government on the accounting standard

setting process and the development of international accounting standards, and to

determine the broad strategic direction of the standard setter, the Australian Accounting

Standards Board (AASB). The FRC will give the AASB directions, advice and feedback on

matters of general policy, and will be responsible for approving its priorities, business

plan, budget and staffing arrangements. However, the FRC will not be able to influence the

AASB’s technical deliberations and hence the content of particular accounting

standards.

The members of the FRC will be formally appointed for a three year term when the

Corporate Law Economic Reform Program Bill 1998 is enacted and comes into effect. In the

meantime, the FRC has been appointed on an informal basis so that it can begin the work of

establishing the new accounting standard setting arrangements.

The members of the FRC, who will serve part-time, have been selected from panels of

names put forward by stakeholder groups.

Mr Paul Rizzo, Group Managing Director,

Finance and Administration, Telstra Corporation Ltd, Melbourne, will be Chairman of the

FRC.

Ms Elizabeth Alexander, AM, Partner,

PricewaterhouseCoopers, Melbourne — nominated by the Australian Institute of Company

Directors;

Mr Don Challen, Secretary, Tasmanian Department of

Treasury and Finance, — nominated by Heads of State and Territory Treasuries;

Mr Leigh Hall, AM, Company Director, Sydney —

nominated by the Investment and Financial Services Association;

Mr David Jackson, Director, Australian

Shareholders’ Association, Sydney — nominated by the Australian

Shareholders’ Association;

Mr Jeffrey Lucy, Managing Partner,

PricewaterhouseCoopers, Adelaide — nominated by The Institute of Chartered

Accountants in Australia;

Mr Charles Macek, Chairman, County Investment

Management, Melbourne — nominated by the Securities Institute of Australia;

Ms Jan McCahey, Chief Accountant, Australian

Securities and Investments Commission, Melbourne — nominated by the Australian

Securities and Investments Commission;

Mr Graeme McGregor, AO, Executive Director,

Finance, The Broken Hill Proprietary Company Limited, Melbourne — nominated by the

Australian Society of Certified Practising Accountants;

Mr Robert Nottle, CBE, Deputy Managing Director,

Market Services, Australian Stock Exchange, Melbourne — nominated by the Australian

Stock Exchange;

Mr Gary Potts, Executive Director, Markets Group,

Department of the Treasury, Canberra — representing the Commonwealth; (Ms Veronique

Ingram, General Manager, Corporate Governance and Accounting Policy Division, Treasury,

Canberra, will be an Alternate Member); and

Mr Michael Ullmer, Group General Manager,

Financial and Risk Management, Commonwealth Bank, Sydney — nominated by the Business

Council of Australia.

A second Commonwealth representative — a senior

officer of the Department of Finance and Administration, Canberra — will be appointed

shortly.

The Treasurer also announced the appointment of Mr Gregory Ward, Chief Financial

Officer, Macquarie Bank Limited, to the existing Australian Accounting Standards Board

until 31 December 1999, pending the establishment of the new accounting standard

setting arrangements. Under the new arrangements, the FRC will appoint the members of the

AASB (with the Treasurer appointing the AASB Chairman).

CANBERRA

20 September 1999