Australian Securities and Investments Commission (Australian Accounting Standards Board—Part-time Member) Appointment (No. 1) 2024

Overview

The Australian Securities and Investments Commission (Australian Accounting Standards Board—Part-time Member) Appointment (No. 1) 2024 was enacted to address the need for qualified part-time members on the Australian Accounting Standards Board (AASB). This notifiable instrument was introduced by the Financial Reporting Council, which, pursuant to subsection 236B(2) of the Australian Securities and Investments Commission Act 2001, is empowered to appoint members to the AASB. The policy objective behind this appointment is to ensure that the AASB benefits from expertise and experience that can contribute to the development and maintenance of high-quality accounting standards. The appointment of Carolyn Cordery aims to fill a part-time role on the AASB, which is intended to enhance the board's capability and effectiveness in performing its functions.

Scope and Application

The Australian Securities and Investments Commission (Australian Accounting Standards Board—Part-time Member) Appointment (No. 1) 2024 outlines the appointment of Carolyn Cordery as a part-time member of the Australian Accounting Standards Board (AASB) by the Financial Reporting Council (FRC). The appointment is made under subsection 236B(2) of the Australian Securities and Investments Commission Act 2001, with the FRC confirming Cordery's qualifications in accordance with subsection 236B(3) of the Act. The appointment is effective from the day after the instrument is registered on the Federal Register of Legislation and will last until 30 June 2026. This appointment pertains to the professional conduct and responsibilities of Carolyn Cordery within the AASB, impacting financial reporting standards in Australia. The legislation applies specifically to Cordery, a qualified individual, within the jurisdiction of the Australian Securities and Investments Commission Act 2001, and there are no stated exclusions or exemptions in this particular instrument. The scope and duties of Cordery's role may be further defined or extended through subordinate instruments or additional legislative provisions.

Key Provisions

The key provisions of the Australian Securities and Investments Commission (Australian Accounting Standards Board—Part-time Member) Appointment (No. 1) 2024, as outlined in the notifiable instrument, primarily concern the appointment of Carolyn Cordery to the Australian Accounting Standards Board (AASB) on a part-time basis (s. 1). This appointment is made under the authority conferred by the Australian Securities and Investments Commission Act 2001, specifically subsection 236B(2). Carolyn Cordery’s appointment is effective from the day following the registration of this instrument on the Federal Register of Legislation and will last until 30 June 2026 (s. 1). The appointment is made with the understanding that Carolyn Cordery meets the qualifications required by subsection 236B(3) of the Australian Securities and Investments Commission Act 2001. The Act imposes certain obligations on Carolyn Cordery as a part-time member of the AASB. She is expected to contribute to the setting of accounting standards in Australia, participating in meetings, deliberations, and decision-making processes as required by the AASB. Her role will involve ensuring that the accounting standards set by the AASB are of high quality and are in the public interest (s. 1). Additionally, as a member of the AASB, Carolyn Cordery will be expected to adhere to the standards of conduct and professional behaviour applicable to members of the AASB, as outlined in the AASB’s governance framework. There are no specific offences, penalties, or consequences outlined in the instrument itself for breach of any obligations under the appointment. However, any failure to adhere to the AASB’s standards of conduct or to fulfil the responsibilities of the role as outlined in the Australian Securities and Investments Commission Act 2001 could potentially lead to disciplinary action, including possible removal from the position. The AASB’s governance framework and the broader legislative provisions under which the AASB operates may provide further details on potential consequences for non-compliance or misconduct. While the instrument does not specify maximum penalties for breach, the overarching legislation and the AASB’s governance framework would govern any such consequences.