Document ID: chunk:federal_register_of_legislation:F2019L00016:reg:20:p6
Version: federal_register_of_legislation:F2019L00016
Segment Type: reg
Provision Reference: reg 20 (pt 6/9)
Character Range: 25466–28506

certain extractive industries, or viewership information or ratings used to determine advertising revenue in the entertainment industry; and

           * Mortality tables used to determine liabilities in the life insurance and superannuation sectors.

31.               Following the paragraph inserted above, the following paragraph A2 is inserted:

A particular set of information is more likely to be suitable for use by a broad range of users and less likely to be subject to influence by any particular user if the external individual or organisation provides it to the public for free, or makes it available to a wide range of users in return for payment of a fee. Judgement may be required in determining whether the information is suitable for use by a broad range of users, taking into account the ability of the entity to influence the external information source.

32.               The following paragraph A3 is inserted following the above insertions:

An external individual or organisation cannot, in respect of any particular set of information, be both an external information source and a management's expert, or service organisation or auditor's expert.

33.               The following paragraph A4 (including a footnote 8) is inserted following the above insertions:

However, an external individual or organisation may, for example, be acting as a management's expert when providing a particular set of information, but may be acting as an external information source when providing a different set of information. In some circumstances, professional judgement may be needed to determine whether an external individual or organisation is acting as an external information source or as a management's expert with respect to a particular set of information. In other circumstances, the distinction may be clear. For example:

           * An external individual or organisation may be providing information about real estate prices that is suitable for use by a broad range of users, for example, information made generally available pertaining to a geographical region, and be determined to be an external information source with respect to that set of information. The same external organisation may also be acting as a management's or auditor's expert in providing commissioned valuations, with respect to the entity's real estate portfolio specifically tailored for the entity's facts and circumstances.

           * Some actuarial organisations publish mortality tables for general use which, when used by an entity, would generally be considered to be information from an external information source. The same actuarial organisation may also be a management's expert with respect to different information tailored to the specific circumstances of the entity to help management determine the superannuation liability for several of the entity's superannuation plans.

           * An external individual or organisation may possess expertise in the application of models to estimate the fair value of securities