What Is AIFRS & How Does It Affect Me?
The Australian Equivalent of International Financial Reporting Standards (AIFRS) are the result of several significant Corporate failures over the last 5 years or so and are an attempt to better inform people andsuppliers who are dependant on large organisations.
No longer is it sufficient for large or listed organisations to supply the usual Financial Reports to ASIC each year or reporting period. There is much more disclosure required of these organisations and it can affect many levels within the organisation.
The ideal scenario is that the general public and other organisations that are planning on extending credit can access information that affects their risk perception.
How does this affect IT?
Part of the reporting can include the Business Continuity Plan.
What happens in the event of a disaster?
For any significant organisation these days, the ability to get the business up and running again in a short period of time is looked upon as a big plus. Whereas, the lack of a plan to do this could mean that there is too high a risk in doing business with the organisation.
If you manage the IT facilities for your organisation, you can expect a call from senior management to present your plan for IT Continuity as part of the overall Business Continuity Plan. If you don’t have one, it would be a good idea to put together a plan of what can be achieved and how quickly.
Even if your organisation is not classed as a Large Organisation or Publicly Listed, your attitude to Risk Management could win or lose your position as a supplier to other Large orListed Organisations.
For ASIC, at present, you need to fulfil 2 of the following 3 criteria to be required to report to ASIC under AIFRS:
- Turnover of $AUS10 million or more
- Employ 100 staff or more
- Have Total Assets of $AUS6 million or more
For more information, visit the ASIC website.
