ASIC reissues rounding and other class orders
The Australian Securities and Investments Commission (ASIC) recently reissued class orders that impact financial reporting because ‘sunset clauses’ mean that they would otherwise be repealed ten years after commencement date.
The class orders are now referred to as ‘Legislative Instruments’. The new references and commencement dates are recorded in the table below:
Are there any changes?
Other than the legislative instrument dealing with rounding (2016/191) there are no substantive changes. The wording in the instruments have essentially just been ‘cleaned up’ and references to superseded accounting standards have been deleted.
There are four instances where entities with total assets of more than $1 billion will be prevented from rounding to the nearest thousand dollars ($’000), even though they were previously permitted to round under CO 98/100:
- s300(1)(d) – details of options granted to directors and any of the five most highly remunerated officers (directors’ report)
- s300(11) – directors’ interests in shares and options of listed companies
- s300(12) – directors of responsible entity of listed schemes – interests in shares and options
- Paragraphs 44 and 46 of AASB 2 Share-based Payment – option reconciliations and valuation inputs (notes), however these can now be rounded to the nearest cent.
The revised class order does not permit rounding at all for s300(1)(d) disclosures and only permits rounding to the nearest one cent for all entities for the following:
- s300(6)(c) - options outstanding at the date of the directors’ report – exercise price
- s300(7)(d) and (e) – options exercised during the period – amounts paid and unpaid for exercised options
- AASB 2, paragraphs 44 and 46 - option reconciliations and valuation inputs.
Consistent with current requirements, no rounding is permitted in the audited remuneration report.