On 25 November 2014, the Australian Institute of Company Directors lodged a submission with the Australian Accounting Standards Board (AASB) in response to their exposure draft, ED 256: Removal of Cross-References from Financial Statements to Other Documents.
Company Directors in its submission stated that it does not support the proposed amendments set out in ED256 which restricts the ability to cross-reference to disclosures outside the financial statements in certain instances. We are of the view that the Basis of Conclusions supporting ED256 does not sufficiently articulate the nature and extent of the ‘unintended audit or regulatory compliance consequences in an Australian reporting context’ that may arise and that justify the need for the proposed amendments in the exposure draft.
Further, we are concerned that removing the ability of entities to cross-reference to sections outside of the financial statements for certain disclosures may result in the duplication of information within an entity’s broader corporate reporting and increase the reporting burden.
This submission is of relevance to all reporting entities that are required to apply the accounting standards.
Click here to download the submission (PDF 99 KB.)