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Financial Markets Conduct Act 2013

Financial reporting - Preparation, audit, and lodgement of financial statements - FMC reporting entities with higher level of public accountability

461J: External Reporting Board must have regard to indication of level of public accountability

You could also call this:

"The External Reporting Board considers how important a company is to the public when deciding financial reporting rules."

Illustration for Financial Markets Conduct Act 2013

When the External Reporting Board is making a plan to change or replace the way financial reporting tiers are set up, you need to know they are looking at specific rules. These rules are in the Financial Reporting Act 2013, in sections 29 to 33. The Board must think about which companies have a higher level of public accountability, as stated in section 461K. The Board does not have to put certain companies in specific tiers of financial reporting, even if they have a higher level of public accountability. This means some companies can be in one tier, while similar companies are in another tier, according to section 461K.

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"Breaking the law by not following financial reporting rules can get you in big trouble"

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461K: FMC reporting entities considered to have higher level of public accountability, or

"Some organisations must be more open with the public because they handle lots of money or investments."

Part 7Financial reporting
Preparation, audit, and lodgement of financial statements: FMC reporting entities with higher level of public accountability

461JExternal Reporting Board must have regard to indication of level of public accountability

  1. Subsection (2) applies when the External Reporting Board is preparing a proposal to vary or replace the strategy for establishing different tiers of financial reporting (see sections 29 to 33 of the Financial Reporting Act 2013).

  2. The External Reporting Board must have regard to which FMC reporting entities are considered to have a higher level of public accountability under section 461K.

  3. Nothing in this section or section 461K requires any particular class of FMC reporting entity to be included within a particular tier of financial reporting (for example, some entities referred to in section 461K(1) could be included in one tier while other entities referred to in that subsection could be included in another tier).

Notes
  • Section 461J: inserted, on , by section 48 of the Financial Reporting (Amendments to Other Enactments) Act 2013 (2013 No 102).