Neil Drabsch. CFO, QBE Insurance Group

Transcription

1

2 Neil Drabsch CFO, QBE Insurance Group

3 A stronger global reporting regime To facilitate consistency and comparability in financial reporting Assist investment in capital and funding IASB well placed as the common standard setter Global acceptance a challenge

4 The IASB a global standard setter Commenced in 2001 Principles based standards In 2005, IFRS adopted by many countries including European Union was a quantum leap

5 IASB composition strength in diversity New IASB chairman and vice chair from 1 July 2011 Board positions are currently held by representatives of the Netherlands (Chairman), Australia/New Zealand (Vice Chairman), UK, France, Sweden, Brazil, India, Japan, South Africa, Korea, China and 4 representatives from the USA The Board is to increase from 15 to 16 Board members by July 2012

6 Adoption of IFRS not yet global The US still no decision from the SEC Europe and UK listed companies complying with IFRS (as adopted by the EU) since 2005 Asia-Oceania mostly converging with IFRS though with some differences in application Australia adopted IFRS for all listed companies from The AASB has made some changes to IFRS to restrict options available under IFRS US SEC major concession to non SEC registered companies to provide in offering memoranda financial information in IFRS format without US GAAP reconciliation

7 IFRS major projects, jointly with FASB to re-expose or staff draft *recently amended implementation date

8 Converge with FASB has delayed the IASB work plan Leases, revenue recognition and impairment projects have all slowed as the IASB and FASB attempt to converge The insurance project has slowed considerably and a number of previously agreed areas have been re-opened for debate The FASB rules basis and IASB principles basis remain far apart The delay has allowed additional time for lobbying by Europe and FASB on insurance issues resulting in further delay Particularly in insurance, it seems sensible for the IASB to move to a standard without FASB

9 IASB consultation process All major documents (such as discussion papers and ED s) are made public and open for comment EFRAG are the main European body engaging with the IASB on the development of standards FASB are fully engaged in the IFRS development process through many joint projects AASB in Australia is committed to developing a single set of high quality, transparent and comparable standards for general purpose financial reporting In recent years the Asian-Oceanian Standard Setters Group ( AOSSG ) has attracted many members countries across Asia Oceania and engage with the IASB along the lines of the EFRAG. In time this looks to become a strong regional forum for debating IIFRS development

10 Australian companies should engage with the IASB Individuals, companies and organisations can submit comments on the IASB proposals Industry groups can submit a combined response potentially strengthening their case We can also coordinate with the AASB in submitting a response and AASB will often seek comment from interested parties prior to drafting their response We can support AOSSG in seeking a regional response

11 Consistency with regulatory reporting is important Regulatory reporting is country specific Differences currently exist between regulatory and financial reporting in Australia (eg unearned premium and loss reserving in insurance) Consistency of regulatory and financial reporting ideal for users and preparers Significant dialogue between APRA and overseas regulators Consistency of capital requirements across major international markets needed so Australian companies not disadvantaged e.g. APRA early adoption of Basel III principles potentially a competitive disadvantage

12 The way forward A stronger reporting regime needs an efficient and effective IASB Difficult task for the IASB to develop a globally acceptable set of standards We are dependent on the global financial markets for capital and funding. Investors depend on consistent, comparable and transparent reporting to assess financial strength and key financial ratios IASB to increase their speed of developing standards IASB to develop IFRS and allow FASB to bring about their own convergence Look to AASB and AOSSG to maximise the Australian contribution to the debate Australian companies and agencies to play their part in influencing change

13 This presentation has been prepared for the FSAA National Conference May Opinions put forward herein are not necessarily those of FSAA and FSAA is not responsible for those opinions. The information presented at the seminar is of a general nature and a reader of this presentation must seek their own independent advice before using it for any purpose.