16 March 2005

Trans-Tasman Accounting Body cross appointments

Charles Macek and Warwick Hunt cross appointed to FRC and ASRB.

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The Australian Treasurer, Peter Costello and New Zealand Commerce Minister Pete Hodgson today jointly announced cross-appointments between the Australian Financial Reporting Council (FRC) and the New Zealand Accounting Standards Review Board (ASRB).

Charles Macek, Chair of the FRC has been appointed as a member of the ASRB and Warwick Hunt, Chair of the ASRB has been appointed as a member of the FRC.

"This is a further step in developing a trans-Tasman single economic market," Peter Costello said. "New Zealand and Australia are both adopting international accounting standards. This has increased the need for high levels of coordination between Australian and New Zealand accounting standards bodies."

"The FRC and ASRB are responsible for standards setting oversight and strategy," said Pete Hodgson. "These cross-appointments will promote higher levels of coordination and communication in these areas."

"They will also give us more opportunity to influence the direction of international standards," said Mr Costello.

Today's announcement follow the recent cross-appointments of David Boymal, Chair Australian Accounting Standards Board (AASB) to the New Zealand Financial Reporting Standards Board (FRSB) and; Joanna Perry, FRSB Chair to the AASB.

"It is no coincidence that all four cross-appointees are the chairs of their home bodies," Pete Hodgson added. "It reflects the importance that both countries attach to the trans-Tasman relationship and working towards a single economic market."

Charles Macek
Charles Macek is a company director with more than 30 years experience in the financial services industry including insurance, stockbroking, investment management and investment banking in Australia, New Zealand, the United Kingdom, the United States and Japan. He has held senior positions and directorships in a range of public companies. Current directorships include Telstra Corporation Ltd and Wesfarmers. Charles Macek has been appointed as a member of the ASRB from 21 March 2005 to 10 June 2006; the day his term on the FRC expires.

Warwick Hunt
Warwick Hunt is the Chief Executive Officer of PricewaterhouseCoopers New Zealand and a member of the firm's New Zealand Board. He is a technical accounting, audit and transaction service specialist with 20 years experience in leading accounting practices in New Zealand and South Africa. He specialises in the resolution of complex commercial, financial reporting; and governance related issues. Warwick Hunt was appointed as a member of the FRC for three years with effect from 9 February 2005.

BACKGROUND - The Appointment Process
The responsible minister in each jurisdiction nominated a member from their home accounting body for membership of the host country body. Each nominee was then considered for appointment in accordance with the relevant host country's process.

Financial Reporting Council (FRC)
The FRC is established under Part 12 of the Australian Securities and Investment Commission Act 2001. Members are appointed by the Australian Treasurer. There are no mandatory qualifications for members or legislative limitations on the number of members. The FRC comprises a Chair and representatives from the business community, accounting profession and governments. www.frc.gov.au

Accounting Standards Review Board (ASRB)
The ASRB is a Crown entity established under the Financial Reporting Act 1993. Its main function is to review and, if it thinks fit, approve any financial reporting standard or amendment submitted to it. The ASRB consists of not less than four and not more than seven members appointed by the Governor-General on the recommendation of the Minister of Commerce. When considering appointments, the Minister must recommend candidates who have knowledge of, or experience in, business, accounting, finance, economics or law.

The New Zealand Government is currently reviewing the Financial Reporting Act. A Ministry of Economic Development discussion document proposes that the ASRB be replaced with a new body with broader responsibilities. www.asrb.co.nz

ENDS

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