media release (14-146MR)

ASIC provides interim relief on key management personnel equity instrument disclosures

Published

ASIC today announced the release of a new Class Order [CO 14/632] Key management personnel equity instrument disclosures, to assist in the preparation of directors' reports for financial years ending on or before 30 September 2014.

The class order has been issued to address drafting anomalies in key management personnel disclosure requirements that were moved from accounting standard AASB 124 Related Party Disclosures (AASB 124) into the Corporations Regulations for financial years starting on or after 1 July 2013. The relevant disclosures relate to:

  • equity instruments held by members of key management personnel or their close family members

  • certain transactions involving equity instruments between the disclosing entity and members of key management personnel or their close family members, and

  • options or rights over equity instruments held by key management personnel or their close family members.

The class order narrows the disclosure required by entities about equity instruments held by directors, other key management personnel and their close family members. Consistent with AASB 124, ASIC's relief means that disclosures only need to be about equity instruments in the disclosing entity or its subsidiaries rather than every company they have an investment in. Entities that adopt the relief will be required to make the disclosures by class of the equity instrument, consistent with AASB 124.

‘ASIC has facilitated this relief to ensure that shareholders receive meaningful disclosure in annual reports and so that directors and companies do not need to provide information that is of little relevance,’ ASIC Commissioner John Price said.

The relief has been granted on an interim basis (applying to reports for financial years ending on or before 30 September 2014) in anticipation of law reform correcting the drafting anomalies.

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[CO 14/632]

Editor's note 1:

On 23 December 2014, ASIC extended Class Order [CO 14/632] Key management personnel equity instrument disclosures for a further interim period of 6 months, pending the commencement of the amendments foreshadowed by the Corporations Amendment (Remuneration Disclosures) Regulation 2014 released as exposure draft regulations in November 2014.

These regulations will address the drafting anomalies in key management personnel disclosure requirements contained in the Corporations Regulations and dealt with in Class Order [CO 14/632].

Editor’s note 2:

On 19 May 2015, ASIC extended Class Order [CO 14/632] Key management personnel equity instrument disclosures for a further interim period concluding 31 December 2015, pending the commencement of the amendments foreshadowed by the Corporations Amendment (Remuneration Disclosures) Regulation 2014 released as exposure draft regulations in November 2014. These regulations will address the drafting anomalies in key management personnel disclosure requirements contained in the Corporations Regulations and dealt with in Class Order [CO 14/632].

Editor’s note 3:

On 12 February 2016, ASIC extended Class Order [CO 14/632] Key management personnel equity instrument disclosures for a further interim period of 12 months concluding 31 December 2016, pending the commencement of the amendments foreshadowed by the Corporations Amendment (Remuneration Disclosures) Regulation 2014 released as exposure draft regulations in November 2014. These regulations will address the drafting anomalies in key management personnel disclosure requirements contained in the Corporations Regulations and dealt with in Class Order [CO 14/632].

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