Tuesday 13 Nov 2018
*

Latest Accounting News
Hot Issues
Fringe Benefits Tax (FBT): employees’ private use of vehicles
ATO to contact clients over bank details
ATO claws back $850m in unpaid SG in FY 17-18
Appetite for property in SMSFs shows signs of life despite tough market
Superannuation gender gap narrowing, research shows
Identification numbers for directors
How financial advice helps create wealth.
Australia's vital statistics
Unlocking equity crowdfunding in Australia
$20m boost for SME clients looking to exporting
Work-Related Expenses
ATO updates crypto guidance
ATO zones in on hundreds of newly created reserves
Senate passes $20,000 instant asset write-off extension
Victorian Vacant Property Tax
Director Penalty Notices
ATO set to pounce on undisclosed income streams
In case you missed it – The company tax Bill that did pass Parliament.
GST spotlight headed to smaller end of town
Superannuation Amnesty – Maybe! Maybe Not!
ATO drills in car-sharing focus this tax time
What is Bankruptcy?
Update of Australia's vital statistics
ATO speaks on risk factors, surveillance triggers for FY19
ATO’s corporate residency guidance cops backlash
ATO dispels top tax time myths to clients as clampdown rolls out
Tools for budgeting, cash flow, Super and more ….
Guidance for SMSFs on transfer balance reporting
ATO issues alert on super, tax scams
Articles archive
Quarter 3 July - September 2018
Quarter 2 April - June 2018
Quarter 1 January - March 2018
Quarter 4 October - December 2017
Quarter 3 July - September 2017
Quarter 2 April - June 2017
Quarter 1 January - March 2017
Quarter 4 October - December 2016
Quarter 3 July - September 2016
Quarter 2 April - June 2016
Quarter 1 January - March 2016
Quarter 4 October - December 2015
Quarter 3 July - September 2015
Quarter 2 April - June 2015
Quarter 1 January - March 2015
Quarter 4 October - December 2014
Quarter 3 July - September 2014
Quarter 2 April - June 2014
Quarter 1 January - March 2014
Quarter 4 October - December 2013
Quarter 3 July - September 2013
Quarter 2 April - June 2013
Quarter 1 January - March 2013
Quarter 4 October - December 2012
Quarter 3 July - September 2012
Quarter 2 April - June 2012
Quarter 1 January - March 2012
Quarter 4 October - December 2011
Quarter 3 July - September 2011
Quarter 2 April - June 2011
Quarter 1 January - March 2011
Quarter 4 October - December 2010
Quarter 3 July - September 2010
Quarter 2 April - June 2010
Quarter 1 January - March 2010
Quarter 4 October - December 2009
Quarter 3 July - September 2009
Quarter 2 April - June 2009
Quarter 1 January - March 2009
Quarter 4 October - December 2008
Quarter 3 July - September 2008
Quarter 2 April - June 2008
Quarter 1 January - March 2008
Quarter 4 October - December 2007
Quarter 2 April - June 2007
Quarter 1 January - March 2007
Quarter 4 October - December 2006
Quarter 2 April - June 2006
Quarter 4 October - December 2005
Quarter 3 July - September 2005
Quarter 2 April - June 2005
Quarter 2 April - June 2004
Quarter 1 January - March 2004
Quarter 4 October - December 2003
Quarter 3 July - September 2003
Quarter 4 October - December 2001
Quarter 3 of 2012
Articles
Financially literate bosses?
Accountants relish providing financial advice
Securely transfer your personal and business information over the Internet
1 July 2012 Superannuation Reminder
ATO targets disclosure of foreign sources of income.
Trustee Resolutions - Family Trusts
Family Trusts - Children 18 this year?
Financially literate bosses?

The increasing complexity of accounting standards is making it more difficult for company directors to acquire the level of knowledge required to sign off ...


... on financial accounts, according to an inaugural survey of directors’ financial literacy.

The Financial Reporting Council (FRC) this week released the results of its survey on the literacy of Australian company directors, compiling results from 385 respondents including directors and financial professionals.

In some observations accompanying the report, the FRC notes that although the responses were diverse, “almost all the respondents acknowledged there were issues and challenges for directors in acquiring and maintaining the level of financial literacy” they needed for the role.

Directors generally rated their personal level of financial literacy higher than their fellow directors, while accounting professionals surveyed generally rated directors “at notably lower levels” than the directors themselves.
 
Task-force talk

Kevin Lewis, the chair of the FRC Board Education Task Force, said many respondents had mentioned the need for more financial education for directors, without realising that there was already “a lot out there in this regard.”

“This tells us that the providers of those services could probably do a little more about marketing them,” Lewis said in a telephone interview.

“The suggestion is that ASIC, for example, could have a central page on its site where the different training organisations might be listed.”


The report makes a number of suggestions on improving directors’ financial literacy, including:

  • verifying the financial credentials of directors as part of the recruitment process and arranging for any additional training required.
  • a briefing from auditors on accounting policies as part of directors’ inductions.
  • Periodic workshops on specific accounting issues.

Many respondents suggested a system of compulsory accreditation for directors requiring them to have a level of financial literacy and compulsory continuing professional development, although the FRC said it saw “major practical difficulties” in implementing these suggestions.

“The FRC does not believe that a one-size-fits-all approach would work, given the different expectations of directors,” the report says.

Lewis said the FCR had written to many organisations, such as the ASX, the professional accounting bodies and director’s organisations, informing them of the results of the survey.

 

 

Lachlan Colquhoun



30th-September-2012
        
89 Boronia Road Boronia Vic 3155 Phone: (03) 9762 5400 Fax: (03) 9761 1327