Press Release: FRP10/02
27 October 2010
Release of Financial Reporting Panel Reports
The Financial Reporting Panel (FRP) has completed its reports into two additional matters referred to it in early August by the Australian Securities and Investments Commission (ASIC).
The referrals arose from disputes in the accounting treatment between ASIC and BBX Property Investment Fund Limited (BBX) and Oaks Hotels & Resorts Limited (Oaks).
The FRP has ruled in favour of ASIC in relation to the accounting treatment used by BBX and in favour of Oaks in the other matter.
The referrals have provided an important demonstration of the FRP’s key strengths, as the matters were concluded in a little over two months with minimal expense to the companies and to ASIC. The findings will provide further encouragement to both ASIC and companies to use the Panel given its proven track record to resolve the disputes quickly and effectively.
Companies can also take assurance from the knowledge that complex accounting matters are being determined by a panel of independent experts in the field, thereby removing concerns about courts’ limited understanding of accounting standards. The decisions should give confidence to companies about the outcomes that can be achieved, if appropriately supported, through the consideration of matters by the FRP.
As provided for under the FRP’s governing legislation, copies of the Panel’s reports have been given to the lodging entity, ASIC and the relevant market operator (the NSX for BBX and the ASX for Oaks). The FRP released the BBX report on Tuesday 19 October 2010 and the Oaks report on Friday 22 October 2010. The legislation requires ASIC and the market operator to take steps they consider reasonable and appropriate to publicise these reports.
The FRP provides an alternative method of dispute resolution by determining contested issues between ASIC and reporting entities concerning the application of accounting standards in financial reports. The FRP is established under Part 13 of the Australian Securities and Investments Commission Act 2001. Referrals are considered under Division 9, Part 2M.3 of the Corporations Act 2001.
For further information, please contact:
Mr Ken McKenzie, the FRP Chairman, through the FRP Secretary on (02) 6263 2111, via email at frp@frp.gov.au or by mail at
Financial Reporting Panel
The Treasury
Langton Crescent
PARKES ACT 2600