Welcome to Beyond the numbers. Our monthly newsletter provides a summary of the latest developments from domestic and global standard-setting bodies and regulatory authorities.
Top story
The Australian Accounting Standards Board (AASB) will soon issue a new Tier 3 reporting framework for not-for-profit (NFP) entities. The Tier 3 standard is designed for smaller private sector NFP entities and introduces a simplified general purpose financial reporting model, introducing alternative recognition and measurement and reduced disclosure requirements compared to both Tier 1 and Tier 2 frameworks.
Key areas of difference under Tier 3 include simplified approaches to revenue recognition, lessee accounting, employee provisions, consolidation and equity accounting. The application date is for periods beginning on or after 1 July 2029, with early adoption permitted. The AASB has not specified which NFP entities can apply the Tier 3 standard.
Furthermore, from 1 July 2029, NFP entities will be required to prepare general purpose financial statements where required by legislation or their constituting documents (created or amended on or after 1 July 2029) to prepare financial statements in accordance with Australian Accounting Standards or accounting standards.
These changes are expected to affect large and medium-sized charities registered with the ACNC, indigenous corporations as well as many incorporated associations, co-operatives and other NFP entities.
Local reporting
The AASB issued Exposure Draft ED 339 Risk Mitigation Accounting. The Exposure Draft mirrors proposals issued by the International Accounting Standards Board (IASB) and seeks to improve how interest rate repricing risk is reflected in the financial statements.
The Exposure Draft proposes:
- a new Risk Mitigation Accounting (RMA) model to better align accounting outcomes with how entities, particularly financial institutions, manage interest rate risk on a portfolio basis;
- amending AASB 9 to introduce the new RMA model;
- enhanced disclosure requirements in AASB 7 to improve transparency of risk-management objectives, strategies, and outcomes; and
- withdrawal of AASB 139.
The proposals are particularly relevant for financial institutions and corporates exposed to interest rate and market volatility.
Short videos – introduction to RMA, practical application, and FAQ webinar – can be accessed from the IFRS Foundation’s Youtube channel.
The AASB has invited stakeholder feedback on the Exposure Draft until 15 May 2026. The IASB’s corresponding comment period closes on 31 July 2026.
The AASB seeks feedback from private not-for-profit (NFP) entities and universities on the categorisation of income under the new AASB 18 Presentation and Disclosure in Financial Statements, with input to be gathered via a survey (closing 24 April) and a virtual roundtable on 16 April.
The consultation responds to ongoing challenges in interpreting income recognised under AASB 1058 Income of Not-for-Profit Entities within the AASB 18 framework, particularly for grants, donations and contributed assets.
A key focus is whether the presentation and classification principles in AASB 18 apply to income recognised under AASB 1058 and whether additional guidance or modifications to AASB 18 are needed for NFP private sector entities and universities.
Insights will inform potential amendments and targeted educational materials to support more consistent application across the sector.
The AASB agreed to issue an Exposure Draft proposing amendments to align AASB 1060 General Purpose Financial Statements – Simplified Disclosures for For‑Profit and Not‑for‑Profit Tier 2 Entities with the new AASB 18 Presentation and Disclosure in Financial Statements. Relevant AASB 18 guidance will be included in a new Appendix B to AASB 1060. The exposure draft will be open for a 90‑day comment period.
Until AASB 1060 is revised and reissued, entities cannot apply the principles and requirements in AASB 18 to Tier 2 financial statements.
Regulations
ASIC has commenced consultation on a suite of reforms intended to enhance visibility over who ultimately owns or exerts influence over entities listed on Australian financial markets.
The proposals, outlined in Consultation Paper 387, respond to broader legislative reforms under the Treasury Laws Amendment (Strengthening Financial Systems and Other Measures) Act 2025, and seek to bring greater clarity to beneficial ownership structures, including situations where influence is accumulated indirectly through derivative positions rather than direct shareholdings. Proposed measures include a new legislative instrument, an updated Substantial Holding Notice, and amendments to key regulatory guides such as RG 5 on relevant interests, RG 9 on takeover bids, and RG 222 on securities lending and prime broking.
Submissions close on 21 April 2026, with the new regime commencing by 4 December 2026.
NSW Industrial Relations has released updated Long Service Leave (LSL) guidance. The guidance is designed to support clearer and more consistent application of the Long Service Leave Act 1955 (NSW).
The guide addresses how certain provisions of the Act should be interpreted and applied and clarifies, amongst other topics, how to:
- assess continuous service
- assess absences for casual workers
- calculate ordinary hours of work for workers with fluctuating hours
- decide when to use ordinary remuneration and when to use average weekly wage
- treat bonuses for long service leave purposes
- treat accruals after 15 years of service
The updated guidance includes an online long service leave calculator and an eLearning module.
ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument 2016/191 enables certain amounts in the financial report and directors’ report to be rounded to the nearest thousands – or in some cases, millions – of dollars.
That instrument will expire and is replaced by ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument 2026/183 for half-year and financial years ending on or after 30 June 2026.
Entities that apply the rounding instrument are required to update the reference to the new instrument in their 30 June 2026 financial reports.
There are no other changes to the requirements in the updated instrument.
ASIC Instrument 2026/59 allows entities listed on the securities exchanges operated by ASX Limited, Cboe Australia (Cboe), National Stock Exchange of Australia Limited and Sydney Stock Exchange Limited to lodge financial, sustainability and directors’ reports electronically with the market operator without having to also lodge the reports with ASIC.
The remade instrument replaces ASIC Corporations (Electronic Lodgment of Financial and Sustainability Reports) Instrument 2016/181 and extends the relief to entities listed on Cboe.
The Australian Charities and Not-for-profits Commission (ACNC) has extended the transitional reporting arrangements for non-government schools and co-operatives to their 2029 reporting periods.
The ACNC will continue to accept the financial information lodged with the Department of Education (DoE), including the financial report collected by the DoE, as meeting the requirements set out in the ACNC Act.
The ACNC will also continue to accept a financial report submitted by a co-operative to their state or territory regulator as satisfying the requirements of the ACNC Act.
The Australian Communications and Media Authority (ACMA) has announced new rules requiring any business or organisation using branded sender IDs in SMS messages to register those IDs before 1 July 2026. From that date, unregistered sender IDs will automatically be marked as ‘Unverified’, with such messages grouped together on recipients’ devices alongside likely scam texts.
Businesses with an ABN must register early, preferably before 15 May 2026, to avoid delays, while organisations without an ABN (such as community groups or international senders) must register through a certified telco. The register aims to combat text‑based impersonation scams by ensuring only verified organisations can display branded sender names.
Sustainability
The AASB is holding a Preparer Essentials: Understanding the Foundations of AASB S2 Climate‑related Disclosures workshop, delivered in partnership with the IFRS Foundation.
The one‑day, in‑person workshop will be held in Melbourne on 4 May 2026 and is aimed at preparers in the early stages of applying AASB S2. The session will cover identifying climate‑related risks and opportunities, assessing material information and building confidence in applying AASB S2 in practice.
Applications close on 13 April (or earlier if capacity is reached). Places are limited, with one attendee per entity.
ASIC has launched a new series of free eLearning modules to build capability, with particular focus on smaller companies. Developed in partnership with the AASB, the eLearning modules followed the first eight‑module pdf series that introduced the fundamentals of Australia’s new sustainability reporting requirements under the Corporations Act 2001.
Early modules cover the reporting framework, climate change basics and climate‑related physical risks, with later modules addressing climate‑related opportunities and emissions accounting. ASIC has indicated that all modules will be made available in an interactive online format, supported by workshops, to improve accessibility and practical application.
While designed primarily for SMEs and supply‑chain participants, the resources are intended to assist any entity preparing for sustainability reporting for the first time.
The AASB has released educational material to support entities in applying AASB S2, with a focus on identifying and disclosing material climate-related financial information.
The guidance outlines how entities should assess whether climate-related risks and opportunities could reasonably be expected to affect cash flows, access to finance or cost of capital over the short, medium and long term.
It also emphasises the importance of ensuring connectivity between sustainability disclosures and the financial statements.
The International Sustainability Standards Board (ISSB) released a webcast explaining the climate resilience and scenario analysis requirements in IFRS S2 Climate‑related Disclosures.
The webinar clarifies how entities should assess and disclose the resilience of their strategy under different climate‑related scenarios, including both transition and physical risks. The webcast emphasises that scenario analysis is not a forecasting exercise, but a structured tool to evaluate exposures, vulnerabilities and strategic responses under plausible climate pathways. It also explains how qualitative and quantitative information can be combined and how entities should scale their analysis to reflect complexity and data availability.
The guidance is intended to support consistent implementation as jurisdictions progress adoption of IFRS S2 and climate reporting moves from voluntary to mandatory regimes.
IFRS developments
The IASB has published Exposure Draft (ED) 2026‑1 proposing narrow‑scope amendments to IAS 28 Investments in Associates and Joint Ventures to clarify which entities can measure their investments using the fair value option.
The ED proposes to amend paragraphs 18–19 to confirm that entities whose main business is investing in specified assets may elect the fair value option. The changes respond to stakeholder feedback that inconsistent application has affected the classification of income and expenses, particularly ahead of the forthcoming IFRS 18 implementation.
Comments are open until 20 April 2026, with final amendments expected by mid‑2026.
The IASB met in February 2026 to discuss several projects, including:
- Financial Instruments with Characteristics of Equity: The Board confirmed refinements to the fixed‑for‑fixed classification principle, including clarifying when derivatives on own equity meet the condition and updating terminology for adjustment types.
- Amortised Cost Measurement: The IASB tentatively agreed to clarify what constitutes a modification under IFRS 9, confirming that modifications involve changes in contractual terms affecting the nature, timing, amounts or uncertainty of cash flows. It also agreed that substantial modifications result in derecognition and that a principles‑based assessment must be applied.
- The Board also reviewed progress on the post-implementation reviews of IFRS 16 Leases and IFRS 9 (hedge accounting), along with updates on the Equity Method and Provisions – Targeted Improvements, without making further decisions.
A podcast episode summarising the highlights of this meeting is available on the IFRS Foundation’s YouTube channel.
The IFRS Interpretations Committee (IFRIC) finalised its deliberations on the following agenda decisions:
- Classification of a Foreign Exchange Difference from an Intragroup Monetary Liability or Asset (IFRS 18)
- Assessment of a Specified Main Business Activity for the Purposes of the Separate Financial Statements of a Parent (IFRS 18)
- Scope of the Requirement to Disclose Expenses by Nature (IFRS 18)
- Classification of Gains and Losses on a Derivative Managing a Foreign Currency Exposure (IFRS 18)
- Presentation of Taxes or Other Charges that Are Not Tax Expense or Tax Income Applying IAS 12 Income Taxes (IFRS 18)
- Economic Benefits from Use of a Battery under an Offtake Arrangement (IFRS 16)
- Fair Presentation and Compliance with IFRS Accounting Standards (IAS 1)
The IASB will consider these agenda decisions at a future meeting and, if it does not object to their conclusions, the final agenda decisions will be published on the IASB website.
The IASB has released a short webcast outlining the forthcoming accounting standard IFRS 20 Regulatory Assets and Regulatory Liabilities, which is expected to be issued in the second quarter of 2026.
IFRS 20 sets out the requirements for recognising, measuring, presenting and disclosing regulatory assets, regulatory liabilities, regulatory income and regulatory expense. The new Standard is expected to primarily affect industries such as utilities, energy and transport and will replace IFRS 14 Regulatory Deferral Accounts.
The Standard is planned to be effective for annual reporting periods beginning on or after 1 January 2029.
In case you missed it
The Australian Government has introduced the Treasury Laws Amendment (Financial Reporting System Reform) Bill 2026 to establish a new body, External Reporting Australia, merging the Financial Reporting Council with Australia’s accounting and auditing standard setters.
The Bill proposes a revised governance structure for the oversight and development of accounting, auditing and sustainability standards, consolidating existing functions within a single statutory authority. It outlines changes to board composition, oversight arrangements and administrative processes intended to support the operation of the new body.
The Bill has been referred to the Senate Economics Legislation Committee, which is due to report on 24 April 2026.
