Document ID: chunk:federal_register_of_legislation:C2004C01070:clause:2_225
Version: federal_register_of_legislation:C2004C01070
Segment Type: clause
Provision Reference: sch 2 cl 225
Character Range: 514947–517549

225  Establishment, functions and powers of the Financial Reporting Council

Establishment

 (1) A Financial Reporting Council is established.

Functions

 (2) The FRC functions are:
 (a) to provide broad oversight of the process for setting accounting standards in Australia and to give the Minister reports and advice on that process; and
 (b) to appoint the members of the AASB (other than the Chair); and
 (c) to approve and monitor the AASB's:
 (i) priorities; and
 (ii) business plan; and
 (iii) budget; and
 (iv) staffing arrangements (including level, structure and composition of staffing); and
 (d) to determine the AASB's broad strategic direction; and
 (e) to give the AASB directions, advice or feedback on matters of general policy and the AASB's procedures; and
 (f) to monitor the development of international accounting standards and the accounting standards that apply in major international financial centres, and:
 (i) to further the development of a single set of accounting standards for world-wide use with appropriate regard to international developments; and
 (ii) to promote the adoption of international best practice accounting standards in the Australian accounting standard setting process if doing so would be in the best interests of both the private and public sectors in the Australian economy; and
 (g) to monitor:
 (i) the operation of accounting standards to assess their continued relevance and their effectiveness in achieving their objectives in respect of both the private and public sectors of the Australian economy; and
 (ii) the effectiveness of the AASB's consultative arrangements; and
 (h) to seek contributions towards the costs of the Australian accounting standard setting process; and
 (i) to monitor and periodically review the level of funding, and the funding arrangements, for the AASB; and
 (j) to establish appropriate consultative mechanisms; and
 (k) to advance and promote the main objects of this Part; and
 (l) any other functions that the Minister confers on the FRC by written notice to the FRC Chairman.

Powers

 (3) As well as any other powers conferred by this Act, the FRC has power to do all things necessary or convenient to be done for or in connection with the performance of its functions.

 (4) Without limiting subsection (3), the FRC may establish committees and advisory groups.

Restriction on powers

 (5) The FRC does not have power to direct the AASB in relation to the development, or making, of a particular standard.

 (6) The FRC does not have power to veto a standard formulated and recommended by the AASB.