ASIC’s interim relief corrects an inadvertent extension of key management personnel disclosure requirements following the relocation of the requirements from accounting standard AASB 124 Related Party Disclosures to the Corporations Regulations 2001 for financial years starting on or after 1 July 2013.  The interim relief applies for financial years ended on or before 30 September 2014, in anticipation of legislative change to correct the drafting anomalies.

ASIC has released Class Order [CO 14/632] Key management personnel equity instrument disclosure to address an inadvertent extension of key management personnel disclosure requirements for financial reports when they were moved from accounting standard AASB 124 Related Party Disclosures to the Corporations Regulations 2001 for financial years starting on or after 1 July 2013.

CO 14/632 narrows the required disclosure about:

  • equity instruments held by directors, other key management personnel and 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, 

such 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 need to make the relevant disclosures by class of equity instrument, consistent with AASB 124.

The relief has been granted on an interim basis and applies to reports for financial years ending on or before 30 September 2014.  ASIC has indicated that a legislative change will correct the drafting anomalies in the future.

See media release dated 1 July 2014.