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) has released AASB 2026-1, which amends AASB 136 Impairment of Assets and AASB 137 Provisions, Contingent Liabilities and Contingent Assets to include new illustrative examples aimed at improving disclosures about uncertainties in financial statements.
These examples demonstrate how entities can apply the existing requirements in practice, particularly when determining recoverable amounts of assets and when disclosing decommissioning and restoration obligations – even where such uncertainties may be immaterial to carrying amounts.
The amendments are applicable for annual reporting periods beginning on or after 1 July 2025, with earlier adoption permitted.
Local reporting
On 11 December 2025, 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 and practical application – 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 met on 5 February 2026 to discuss developments across Tier 2 reporting, not-for-profit reforms and sustainability implementation.
Key matters discussed included:
- AASB 1060 (Tier 2 Simplified Disclosures): Considered feedback supporting the proposal to align Tier 2 financial statements more closely with the presentation and classification requirements introduced by AASB 18.
- Not-for-Profit Private Sector Financial Reporting (Tier 3) and Conceptual Framework amendments for NFP entities: Continued redeliberations on these projects.
- Sustainability and climate reporting: Discussed feedback received from AASB S2 implementation activities.
CA ANZ members can access the latest financial reporting guides for both Australia and New Zealand. These guides cover key updates for the December 2025 reporting period, including new and amended accounting standards, impact of tax legislation, NFP reporting, climate-related disclosures, and regulator focus areas.
Regulations
The Australian Securities and Investments Commission (ASIC) announced that Company extracts purchased through the ASIC website will no longer contain the residential addresses of company officeholders.
ASIC implemented this change in response to broader privacy and safety concerns including the potential to access personal information, heightened concerns around personal safety and to reduce the risk of identity theft and cyber-crime.
ASIC is working to apply this change to third-party registry intermediaries.
A new Form 398 Copy of sustainability report and auditor’s report is now available for use when lodging sustainability reports under the Corporations Act 2001.
The sustainability report and related auditor’s report must be lodged together with the new sustainability reporting form. Importantly, entities should complete and lodge the sustainability reporting form separately to Form 388 Copy of financial statements and reports. Form 388 will still be required to be used when lodging financial reports, related auditor’s reports and director’s reports.
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.
In February 2026, ASIC issued updated guidance (INFO 295) outlining the regulatory requirements for operators of employee entitlement schemes.
ASIC confirmed that existing relief from certain managed investment and licensing provisions under the Corporations Act 2001 will expire on 1 April 2026. Operators seeking to rely on transitional relief must apply for an Australian Financial Services licence by 1 September 2026. The guidance clarifies governance expectations, conduct obligations and transitional arrangements ahead of a new legislative instrument.
Sustainability
The International Sustainability Standards Board (ISSB) discussed feedback on its future agenda priorities, focusing on biodiversity, ecosystems, and ecosystem services. It confirmed plans to advance its other nature‑related disclosures project that will supplement IFRS S1 and IFRS S2.
A podcast episode summarising the highlights of this meeting is available on the IFRS Foundation’s website.
IFRS developments
The IASB has published an addendum to the IFRIC Update – November 2025 reflecting finalised agenda decisions from the IFRS Interpretations Committee (IFRIC) that were discussed and agreed by the IASB at its January 2026 meeting.
Key updates published in January 2026 include:
- Embedded prepayment option (IFRS 9 Financial Instruments) — clarifies how an entity evaluates whether to separate embedded prepayment options from host contracts under IFRS 9.
- Determining and accounting for transaction costs (IFRS 9) — provides interpretative guidance on the nature of transaction costs under IFRS 9.
- Updated agenda decisions reflecting IFRS 18 Presentation and Disclosure in Financial Statements — the Committee finalised updates to multiple IFRIC agenda decisions that replace references to IAS 1 with references to IFRS 18 for consistency. These updates include disclosures for segment revenues and expenses, financing liabilities, biological assets and derivative settlement accounting.
A podcast episode summarising the highlights of this meeting is available on the IFRS Foundation’s YouTube channel.
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.
In case you missed it
The AASB is inviting feedback on its future work priorities as part of its 2027–2031 Agenda Consultation. The Board seeks input on which projects the Board should prioritise, whether there any projects currently that should be discontinued, and whether any projects or topics should be added.
Comments are due by 31 March 2026.
