Welcome to Beyond the numbers, our monthly newsletter which brings you a summary of the latest developments from local and international standard setters and regulators.
Top story
In a recent address at the Responsible Investment Association Australasia (RIAA) Conference, ASIC Commissioner Kate O’Rourke outlined the regulator’s approach to managing climate-related reporting.
ASIC’s role in implementation revolves around three broad areas:
- regulatory guidance – issuing regulatory guidance to support implementation;
- regulatory relief – considering targeted relief where appropriate; and
- capacity building – building industry capability through education and engagement.
ASIC will adopt a ‘pragmatic and proportionate’ enforcement approach, prioritising transparency and good-faith compliance as entities transition to the new mandatory disclosure regime.
Local reporting
The AASB agenda papers for its meeting on 3 July 2025 are available on the AASB website. Among other items, the Board will consider stakeholder feedback received on:
- Tier 3: Not-for-Profit Private Sector Financial Reporting Framework
- Conceptual Framework – Not-for-Profit Amendments and the proposed amendments to AASB 1057 to extend the population of not-for-profit entities to which Australian Accounting Standards apply.
The Board will also consider:
- Consequential amendments to AASB 107 Statement of Cash Flows arising from the application of AASB 18 Presentation and Disclosure in Financial Statements by not-for-profit public sector entities, universities and superannuation entities
- The Board’s response to ISSB’s Exposure Draft of proposed amendments to sustainability standards
- Updates and developments on climate-related financial disclosures.
Regulations
The Australian Securities and Investments Commission (ASIC) assessed 50 compliance plans used by responsible entities in the operation of a combined 1,471 managed investment funds and found that most of the compliance plans failed to adequately address the most important requirements across the design and distribution obligation (DDO), internal dispute resolution (IDR) and reportable situations (RS) regimes.
ASIC is calling on responsible entities to swiftly address inadequacies and gaps in their compliance plans and will continue to monitor the quality of compliance plans going forward.
ASIC has introduced reforms to streamline the initial public offering (IPO) process, aiming to reduce delays and improve market efficiency.
Key changes introduced include:
- Shorter IPO timetable: Eligible offer documents will be informally reviewed by ASIC two weeks before public lodgement, potentially reducing the IPO timeline by up to a week
- Pre-lodgement engagement: ASIC will engage with issuers before the exposure period
- Accepting retail investor applications during exposure period
The reforms are part of a two-year trial and respond to declining IPO activity and public listings in Australia.
ASIC has renewed its warning to holders of Australian Financial Services Licence (AFSL) ahead of the 1 January 2026 deadline for financial advisers to meet qualification standards.
A recent spot check revealed ongoing errors in the Financial Advisers Register, including inaccurate qualifications and authorisation histories. ASIC stressed that providing false or misleading information is a serious offence and urged licensees to verify all adviser records, particularly for those relying on the experienced provider pathway.
Post-deadline, ASIC will use the register to assess adviser compliance and may take regulatory action where necessary
The Australian Charities and Not-for-profits Commission (ACNC) has revoked the registration of 627 charities after they failed to submit two or more Annual Information Statements.
A charity’s Annual Information Statement and financial report (if required) must be submitted within six months of the end of the charity’s reporting period.
Failure to report not only leads to loss of registration with the ACNC but also forfeits a charity’s eligibility for certain Commonwealth tax concessions.
The ACNC Governing for Good Forum will be held on Wednesday 30 July 2025, in Melbourne and online.
The Forum brings together charities, not-for-profits and sector professionals sharing good governance insights and best practices.
The Forum provides practical advice, valuable perspectives and have excellent networking opportunities with regulators, governance experts and colleagues from across the charity sector.
Sustainability
In June 2025, the International Accounting Standards Board (IASB) confirmed it will proceed with seven illustrative examples to assist entities in reflecting uncertainties, particularly those related to climate, in their financial statements.
This decision follows the Board’s meeting in May 2025, where it considered feedback on the eight examples included in the Exposure Draft Climate-related and Other Uncertainties in the Financial Statements.
A near-final draft of the examples is expected in the third quarter of 2025, with final publication anticipated in October 2025.
On 18 June 2025, the International Sustainability Standards Board (ISSB) decided to update 50 SASB Standards and make related changes to the IFRS S2 guidance to maintain alignment with the climate-related content in the SASB Standards. These changes are described in two Exposure Drafts: Amendments to the SASB Standards and consequential Amendments to the Industry-based Guidance on Implementing IFRS S2. Both Exposure Drafts are open for public comment until 30 November 2025.
When finalised, the amended Standards will be effective 12 to 18 months after issuance, with early application permitted.
A podcast episode summarising the highlights of this meeting is available on the IFRS website.
The IFRS Foundation and ISSB released new e-learning education materials to support first-time preparers of climate-disclosures.
The four self-paced modules include a mixture of written and visual content and interactive knowledge checks, designed to build foundational knowledge of ISSB Standards. The modules are:
- Introduction to the IFRS Sustainability Disclosure Standards;
- Introduction to IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information;
- Introduction to IFRS S2 Climate-related Disclosures; and
- Integrated sustainability disclosures and organisational considerations.
The modules are available for free through the IFRS Sustainability Knowledge Hub with an IFRS.org account. An account can be created for free.
The ISSB has issued educational material presented as a series of questions and answers to help users understand the greenhouse gas (GHG) emissions disclosure requirements in IFRS S2, including those related to:
- providing information about absolute gross GHG emissions generated during the reporting period; and
- disclosing information about GHG emissions, such as GHG emissions targets.
The AASB has formed the AASB S2 Implementation Advisory Panel – a dedicated forum to support consistent, principles-based application across Australia. The Panel will:
- facilitate discussion on implementation questions
- shape Australia’s input to the ISSB Transition Implementation Group (TIG)
- where necessary, refer issues to the AASB for further consideration
The AASB encourages stakeholders to submit potential implementation questions for consideration via the IAP page on the AASB website.
Commonwealth government entities begin reporting under the Commonwealth Climate Disclosure (CCD) regime for 2024-25. Progressively implemented over three years, the regime requires detailed reporting by government agencies on climate-related risks, governance, strategy, and metrics, aligned with international frameworks.
Agencies must ensure their reporting processes meet the new standards, moving beyond generic statements to entity-specific insights. Guidance materials are available on the Department of Finance’s website.
Tranche 1 entities reporting for 2024-25 include:
- all Departments of State
- all Commonwealth entities and Commonwealth companies that are a ‘controlling corporation’ under the National Greenhouse and Energy Reporting Act 2007.
- all specialist investment vehicles and the future fund management agency
- Commonwealth entities and Commonwealth companies that fulfill two out of the four thresholds below:
– referenced in Part 1 of the Climate Change (Consequential Amendments) Act 2022;
– has over 500 employees;
– the value of total assets at the end of the financial year of the entity/company and any entities it controls is $1 billion or more;
– the annual expense for the financial year is $500 million or more. - all Commonwealth entities with responsibility for climate change or climate risk disclosure policy design or implementation, not otherwise covered by the previous criteria.
IFRS Developments
During its June 2025 meeting, the International Accounting Standards Board (IASB) reached tentative decisions on several key agenda items, including:
- Financial instruments with characteristics of equity:
The Board approved revised presentation and disclosure requirements for equity instruments under IFRS 18, IFRS 7, and IFRS 19. These updates aim to provide clearer categorisation of equity holders and enhance disclosures on profit attribution, terms, and dilution risks. Earlier proposals to revise the statement of financial position and statement of changes in equity were withdrawn. The IASB will begin redeliberations on the classification topics in the Exposure Draft at subsequent meetings.
- Equity method of accounting:
The Board considered feedback on the Exposure Draft Equity Method of Accounting—IAS 28 Investments in Associates and Joint Ventures (revised 202x). The IASB will continue redeliberating the proposals in the Exposure Draft.
- Hyperinflationary presentation currency:
The Board finalised amendments contained in Exposure Draft Translation to a Hyperinflationary Presentation Currency. The amendments will apply retrospectively (with limited exceptions), effective from 1 January 2027, with early adoption permitted. The amending standard is expected in Q4 2025.
A podcast summarising the highlights of the meeting is available on the IFRS website.
In June 2025, the IASB commenced its post-implementation review (PIR) of IFRS 16 Leases, aiming to assess whether the Standard is delivering the intended benefits in practice.
The review will evaluate the usefulness of information provided to investors, the costs and challenges of implementation, feedback on more complex elements – including the lease term, discount rates and variable lease payments, and whether the Standard is operating as expected.
A Request for Information was issued on 17 June, with stakeholders invited to comment by 15 October 2025.
The IFRS Interpretations Committee (IFRIC) met in June 2025 to address application challenges and clarify interpretations under IFRS Standards.
Key topics discussed included:
- IFRS 9 – Transaction costs & embedded prepayment options: The Committee started exploring how to account for transaction costs and prepayment features in financial instruments.
- IAS 29 – Hyperinflation indicators: Initial discussions were held on assessing when an economy becomes hyperinflationary.
- IFRS 18 – Agenda decision updates: Nine agenda decisions were updated to reflect the transition from IAS 1 to IFRS 18, aligning terminology and disclosure expectations.
- Reverse factoring & Goodwill disclosures: Updates were proposed to clarify consistent application in areas such as reverse factoring and business combinations.
No decisions were made by the Committee.
In case you missed it
The recording of Nexia Australia’s annual Financial Reporting Update webinar and materials are available on our website. Topics discussed include:
- The key accounting standards changes for 30 June 2025;
- How recent changes will affect the classification of loans with annual review clauses, covenants and other conditions;
- Key elements of mandatory sustainability reporting and how companies will be affected;
- Developments in not-for-profit financial reporting; and
Other considerations for 30 June 2025 financial reporting.
