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Legislative Assembly for the ACT: 2003 Week 6 Hansard (19 June) . . Page.. 2186 ..
(4) The Financial Reporting Council has decided that Australian Accounting Standards will be harmonised with International Accounting Standards (IAS) for reporting periods occurring after 1 January 2005. The IASs include a standard (IAS 19 'Employee Benefits') which specifically addresses the accounting requirements of employers for superannuation. IAS 19 presently enables use of a smoothing technique (the 'corridor' approach) to account for movements in superannuation liabilities.
As part of the harmonisation process with IASs, the Australian Accounting Standards Board (AASB) has advised its intention that in the first quarter of 2004, comment will be invited within Australia regarding application of IAS 19, including use of the 'corridor' approach. The ultimate aim of the AASB is to issue an Australian Accounting Standard which complies with IAS requirements, however the likely date for issuance of this standard has not been advised by the AASB.
(5) Amortising of the reserve over a 3 year period (rather than over a 12 year period) will obviously have a larger financial impact upon the Budget, both with gains and losses.
At the end of the 2002-03 financial year, the reserve stands at an unrealised gain of $112m. By changing amortisation to over 3 years, approximately $37m would be brought to account over each of the next three years, thus reducing superannuation expenses by $37m in each year. By continuing the current amortisation over 12 years, $17m is being brought to account each year.
The superannuation liability is estimated to grow quite substantially over the Budget forward period and because of the shorter amortising period, fluctuations in the liability will have a more substantial impact upon the Budget bottom line.
Children-deaths
(Question No 659)
Mr Cornwell
asked the Minister for Education, Youth and Family Services on 6 May 2003, upon notice:Further to your reply to Question 402 in relation to child deaths and mandatory reporting:
(1) Considering I did not ask for names of the two ACT children who have died, why is it not possible to advise me what action was taken by Family Services to address these individual problems using the:
a) evidence based Risk Assessment Framework: and
b) General Principles of the Children and Young People Act 1999
(2) If, as your reply to (4) of my question that failure to mandatory report is:
a) a police function to prosecute;
b) a internal disciplinary matter at a place of employment;
c) a Coroner's role to make findings in the event of a child's death;
then what role does the Chief Executive of Family Services exercise in any of the above proceedings.
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