Execs win limited pay disclosure reprieve
By Craig Phillips
Australian asset management firms have won a temporary reprieve from having to disclose the level of remuneration paid to directors and executives in reporting their annual results.
A class order issued by the Australian Securities and Investments Commission (ASIC) provides short-term relief from any requirement for financial reports of registered schemes that are disclosing entities to reveal remuneration paid directly or indirectly to directors and executives of their responsible entities.
However, the order only covers financial years and half-years ending June 30, 2004, and does not include reports ending September 30, 2004.
The order was made following a request by the Australian Accounting Standards Board (AASB) for relief from any relevant disclosure requirement of accounting standard AASB 1046 ‘Director and Executive Disclosures by Disclosing Entities’.
AASB announced on June 21 this year that AASB 1046 effectively required externally managed trusts to disclose the remuneration of directors and executives.
However, where a responsible entity has more than one managed investment scheme, the AASB said that the cost of remuneration of specified directors and executives must be allocated on an appropriate basis to each scheme.
Also, when the responsible entity considers allocation on a meaningful basis impossible, the full remuneration of each person should be disclosed.
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