Emissions trading 
 
The Institute continues to be involved with the Department of Climate Change on the assurance needs around emissions reporting. 
 
In May, the Institute hosted the first of two Australian round table forums regarding ‘Assurance on Disclosures of Carbon Emissions Information,’ which were conducted under the auspices of the International Auditing and Assurance Standards Board (IAASB) in order to hear from users, preparers and assurance providers.  
 
The intention is to inform the planned development of an International Standard or Practice Statement on ‘Assurance on Carbon Emissions Information.’ The forum attracted a diverse range of interested parties. The international project is being led by Professor Roger Simnett of the University of New South Wales. 
 
Legislative instruments act  
Also in May, the Institute, with the other professional accounting bodies, lodged a joint submission on the review of the Legislative Instruments Act 2003. Since the Australian Auditing Standards Board (AASB) and the Auditing and Aussurance Standards Board (AUASB) standards are legislative instruments, this review affects those involved in financial reporting and assurance. 
 
The submission suggests ways of streamlining the process of reviewing legislative instruments to provide certainty for those wishing to adopt standards based on international equivalents earlier than their mandatory applicable date.  
 
Threshold for unlisted public companies 
The Institute continues to hold talks with Treasury on the subject of introducing a threshold for financial reporting and auditing requirements for unlisted public companies, including companies limited by guarantee, similar to that used for proprietary companies. Last year, the Institute, with the other professional accounting bodies, made a submission to Treasury supporting a reduction in red tape in this area.  
 
The submission supported the introduction of differential lodgement which would eliminate the need for entities under a prescribed threshold to prepare general purpose financial reports. However it also encouraged Treasury to set up a governance structure for these smaller unlisted public companies to maintain public accountability. For further details visit the financial reporting section of the Institute’s website.  
 
Clarity project  
The IAASB is on track with its upcoming ‘Clarity Project,’ which entails revising and reissuing all of the International Auditing Standards using the new clarified drafting style by December 2008. As expected, the Institute maintains regular communication with the AUASB regarding changes to Australian Standards, which are planned to be effective for financial reporting periods from 1 January 2010.  
 
Auditor registration 
In addition, the Institute is engaged in discussions with relevant government stakeholders on the matter of auditor registration. The Institute will keep members informed as meetings progress. 
 
Relevant links:

• The Institute: submission on the National Greenhouse and Energy Reporting System Regulations Policy Paper