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Artificial Intelligence (AI) is a technology that has left the laboratory and is now being adopted at scale. As AI is introduced across all sectors of the economy, its implementation has raised key issues around its ethical use. It presents considerations across all three of the environmental, social and governance (ESG) dimensions that are increasingly driving business and investment.

A joint research report by the Association of Chartered Certified Accountants (ACCA) and The Chartered Accountants Australia & New Zealand (CA ANZ) Ethics for sustainable AI adoption explores how ethical issues in AI adoption intersect with ESG considerations that define the wider purpose of organisations and how finance and accountancy professionals can play their part, working with AI in a way that drives ESG-centred outcomes. Drawing from a global survey of over 5,700 respondents, the report highlights the following ways finance and accountancy professionals can play their part:

1. set tone at the top on AI adoption
2. deliver sustainable value
3. exercise professional judgement
4. challenge greenwashing
5. comply with regulation and ethics politics
6. prioritise data management
7. take strategic approach to oversight and delivery
8. understand the vendor landscape
9. build knowledge and skills.

AI is one of the most exciting, transformational technological developments of our time, but technology has the potential both to improve lives and to cause harm. Ultimately, it is the ethical and sustainable adoption of AI that will determine its relevance and usability.

ASIC Commissioner Sean Hughes said, ‘COVID-19 conditions have continued through 2021 and companies will be affected differently depending on their industry, where they operate, how their suppliers and customers are affected, and a range of other factors.’ ASIC’s media release on 9 December 2021 highlighted the following key focus areas for financial reporting by companies for reporting periods ending 31 December 2021 under COVID-19 conditions:

• asset values
• provisions
• solvency and going concern assessments
• events occurring after year end and before completing the financial report
• disclosures in the financial report and Operating and Financial Review.

Additional information on the impact of COVID-19 on financial reporting and audit matters is included in ASIC’s frequently asked questions publication.

The NSW Treasurer has signed a financial arrangement approval pursuant to the Government Sector Finance Act 2018 (GSF Act), which provides approval for GSF agencies to enter into derivative arrangements with the New South Wales Treasury Corporation (TCorp).

The approval remains in effect until it is varied or revoked. The previous financial approvals to enter into derivatives with TCorp under the Public Authorities (Financial Arrangements) Act 1987 ceased on 30 November 2021 under the savings and transitional provisions of the GSF Act.

The Office of Local Government (OLG) issued the following circulars:

21-38 ‘Consultation on review of the councillor misconduct framework’

This Circular advises that the Minister for Local Government, the Hon. Shelley Hancock MP, initiated an independent review of the framework for dealing with councillor misconduct in New South Wales.

A consultation paper has been issued to facilitate an understanding of the current framework and to invite submissions identifying areas for improvement, together with suggestions for the practical application of those improvements. Anyone, including councils, individual councillors and council staff can make written submission in response to the consultation paper. Submissions should be made before 28 March 2022.

21-35 ‘2021 Model Code of Meeting Practice for Local Councils in NSW’

This Circular advises that the new Model Meeting code of Meeting Practice for Local Councils in NSW (Model Meeting Code) has been published in the Government Gazette and is expected to be prescribed under the Local Government (General) Regulation 2021 on or before Friday, 19 November 2021.

The new Model Meeting Code contains provisions that allow councils to permit individual councillors to attend meetings by audio-visual link and to hold meetings by audio-visual link in the event of natural disasters or public health emergencies. The provisions governing attendance at meetings by audio visual link are non-mandatory. Councils can choose not to adopt them or to adapt them to meet their own needs.

Under section 361 of the Local Government Act 1993, before adopting a new code of meeting practice, councils must first exhibit a draft of the code of meeting practice for at least 28 days and provide members of the community at least 42 days in which to comment on the draft code. This requirement does not apply to joint organisations.

21-32 ‘Government endorses new rate peg methodology to support growing councils’

This Circular advises that the Minister has endorsed the new rate peg methodology and has asked IPART to give effect to it in setting the rate peg from the 2022-23 financial year.

Some of the key points of the change include:

• To prepare for this reform, an amendment to the Local Government Act 1993 was made earlier this year to ensure that multiple pegs may be set.
• Councils with a growing residential population will be able to raise notional general income by an additional population factor as part of the rate peg from 2022-23.
• The population factor for each council will reflect estimated residential population growth less revenue received from supplementary valuations that year. This will increase for many councils serving growing communities.
• No council will be worse off under the new methodology.

21-31 ‘Post-Election Guide on key decisions and activities for councils, county councils and joint organisations following the local government elections’

This Circular advises councils, county councils and joint organisations that OLG has prepared a ‘Post-Election Guide for Councils, County Councils and Joint Organisations’ to help them comply with several key decisions and activities that need to occur at the first meetings following the elections and in the 12 months that follow.

Topics discussed included:

AASB Meeting Highlights – 10–11 November 2021

• fair value measurement for not-for-profit entities (NFP)
• analysis of subsidiaries ED versus AASB 1060
• insurance activities in the public sector
• not-for-profit private sector financial reporting framework
• IASB update
• APESB update
• disclosure initiatives
• income of NFP entities (AASB 1058 and AASB 15 NFP guidance) – narrow-scope amendments & measurement of right-of-use assets from concessionary leases
• research update
• first-time adoption of AASB 1 by a subsidiary exposure draft
• intangibles
• ED 312 ‘Disclosure of accounting policies – amendments to Tier 2 and other Australian accounting standards’.

Latest news, accounting standards and work-in-progress documents from the AASB included:

Topics discussed included:

IASB Meeting Highlights – 14–16 December 2021

• second comprehensive review of the IFRS for SMEs standard
• rate-regulated activities
• primary financial statements
• financial instruments with characteristics of equity
• maintenance and consistent application – lease liability in a sale and leaseback
• business combinations under common control.

IASB Meeting Highlights – 15–19 November 2021

• rate-regulated activities
• third agenda consultation
• goodwill and impairment
• primary financial statements
• post implementation review of IFRS 10-12
• dynamic risk management
• second comprehensive review of the IFRS for SMEs standard.

IASB Meeting Highlights – 25–28 October 2021

• second comprehensive review of the IFRS for SMEs standard
• goodwill and impairment
• post implementation review of IFRS 10-12
• equity method
• pension benefits that depend on asset returns
• primary financial statements
• amendments to IFRS 7 Insurance Contracts
• rate-regulated activities.

Latest news from the IFRS Foundation included:

Topics discussed included:

IPSASB Meeting Highlights – 7–10, 14–15 December 2021

• leases
• retirement benefit plants
• conceptual framework – limited scope update-next stage
• natural resources
• revenue and transfer expenses
• measurement suite of EDs.

Recent news from the IPSASB included:

Topics discussed included:

AUASB Meeting Highlights – 30 November–1 December 2021

• public sector guidance statement – review and approval
• extended external reporting and assurance update
• AUASB technical work program – 2021-22 update
• technology – project advisory group update
• less complex entities consultation paper – update and feedback.

Latest news from the AUASB included:

Topics discussed included:

IAASB Meeting Highlights – 19–20 October 2021

• definition of listed entity and public interest entities
• conforming amendments to other IAASB standard arising from the QM standards
• non-authoritative support material on documentation.

APESB Meeting Highlights – 26 November 2021

• update on awareness of APESB pronouncements
• international and other activities
• proposed revisions to APES 110 for Objectivity of Engagement Quality Reviewers
• proposed revisions to APES 330 ‘Insolvency Services’
• update from the AUASB
• proposed revisions to fee-related provisions of APES 110
• update on the technology project.

Latest news and media releases from the APESB included:

Topics discussed included:

IESBA Meeting Highlights – 30 November, 1–3, 8 & 16 December 2021

• definition of listed entity and public interest entity
• QM related conforming amendments
• technology fact finding & thought leadership
• engagement team – group audits
• technology project
• long association post-implementation review
• benchmarking
• tax planning.

Latest news and publications from the IESBA included:

Treasury’s recent releases and other guidance included:

DPC released the following memos and circulars:

NSW Procurement Board’s recent directions included:

Inquiries and Reports tabled in NSW Parliament included:

Recent publications included:

Recent media releases included:

Recent news included: