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.
In the spotlight
We invite you and your colleagues to join our upcoming live webinar on Tuesday, 26 May 2026 at 11.00am – 12.00pm AEST.
Our National Technical Director, Martin Olde, will provide practical insights into the key financial reporting developments impacting 30 June 2026 year-ends. This annual webinar will cover:
- Key accounting standards and financial reporting changes for 30 June 2026;
- Other important changes and considerations for 30 June 2026 financial reporting;
- Applying mandatory sustainability reporting and which organisations will be affected;
- First impressions of the new AASB 18 presentation and disclosure standard; and
- Developments in not-for-profit financial reporting, including the new Tier 3 framework.
Gain practical insights into the latest developments to help you navigate the upcoming reporting period with confidence.
This webinar is recommended for Chief Financial Officers, Financial Controllers, and Finance Managers.
Local reporting
The Australian Accounting Standards Board (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.
Regulations
The Australian Securities and Investments Commission (ASIC) has reissued Regulatory Guide 43 Financial reporting and audit relief, updating guidance for the first time since 2011. Key updates include the consolidation of former RG 29 Financial reporting by Australian entities in dual listed company arrangements into RG 43, expanded coverage for corporate collective investment vehicles (CCIVs) and registrable superannuation entities (RSEs), and clearer explanations of ASIC’s relief powers and application processes.
The updated guide also reflects recent legislative developments, including the introduction of sustainability reporting requirements. RG 43 now acknowledges the interaction with sustainability reporting and directs entities seeking sustainability reporting or audit relief to Regulatory Guide 280 Sustainability reporting.
While the guidance has been streamlined, ASIC has confirmed that the underlying policy settings for granting relief remain unchanged.
ASIC has announced that around 70% of its paper‑based lodgements can now be submitted by email. From 31 March 2026, a further 30 forms were enabled for email lodgement, bringing the total to 88 forms and reducing reliance on postal submissions by approximately 13,000 lodgements each year.
The expanded list includes company and foreign company notifications, auditor appointments and consents, credit licence updates and debenture holder notices, with some foreign company forms available electronically for the first time. Postal lodgement remains available where preferred.
The Australian Securities Exchange (ASX) has issued guidance on continuous disclosure considerations arising from the ongoing conflict in the Middle East.
ASX reiterates that while Listing Rule 3.1 does not require entities to predict uncertain outcomes, disclose speculative or insufficiently definite information, or announce publicly available events that generally affect the market or a sector, disclosure will be required where the conflict has a material entity‑specific impact.
This includes circumstances where previously issued earnings guidance is likely to become materially inaccurate, or where an operational decision taken in response to the conflict is expected to have a material effect on the price or value of the entity’s securities.
The Australian Charities and Not-for-profits Commission (ACNC) has published guidance to help charities meet their governance obligations when considering investing surplus funds.
The guidance emphasises ACNC Governance Standard 5 Duties of Responsible People, including responsibilities to manage their charity’s financial affairs responsibly and to act with reasonable care and diligence.
The guidance considers aspects relating to a charity’s investment decision-making processes, risk management and policies and procedures about investing.
From 1 April 2026, charities registered with the ACNC can use their ACNC registration to automatically fundraise in NSW, without needing to hold a NSW fundraising authority.
The reforms reduce duplication and simplify compliance by aligning NSW laws with national harmonisation efforts and the ACNC framework.
Furthermore, ACNC-registered incorporated associations can fully meet NSW financial reporting obligations provided they comply with ACNC requirements and satisfy exemption conditions. This replaces the previous streamlined reporting arrangements under exemption orders and further reduces duplication and regulatory burden.
The NSW Education Standards Authority (NESA) has released updated NSW Non‑government Schools Not‑for‑Profit Guidelines. The revisions align with changes to the Education Act 1990 (NSW) and the Education Regulation 2017, following a review of the operation of section 83C of the Act.
The updated guidance aims to strengthen transparency and accountability in the use of public funding and clarifies NESA’s role in assuring school expenditure is directed to school operations.
Schools are encouraged to review the guidelines as part of their governance and compliance arrangements.
Sustainability
The AASB has released new educational materials to support entities applying the climate resilience and climate‑related scenario analysis requirements in AASB S2.
The material provides guidance on assessing climate resilience and using scenario analysis in a manner proportionate to an entity’s circumstances. Additionally, the accompanying video features insights from recent AASB scenario analysis workshops, outlining steps entities can take when undertaking their resilience assessments and scenario analysis processes.
The AASB, in collaboration with the Commonwealth Scientific and Industrial Research Organisation (CSIRO), has released a high‑level comparison of greenhouse gas emissions reporting under AASB S2 Climate‑related Disclosures and Australia’s National Greenhouse and Energy Reporting (NGER) Scheme.
The paper highlights key differences in objectives, scope and measurement, noting that AASB S2 is investor‑focused and requires disclosure of Scope 1, Scope 2 and Scope 3 emissions, while the NGER Scheme is a regulatory framework focused on Scope 1 and Scope 2 emissions for national emissions tracking. The report also contrasts organisational boundary approaches, gases covered, emission factors and global warming potential assumptions.
The comparison provides helpful context for entities subject to both regimes as mandatory climate reporting commences.
IFRS developments
At its April 2026 meeting, the International Accounting Standards Board (IASB) discussed projects including:
- Post‑implementation review of IFRS 16 Leases: The IASB tentatively decided to explore requiring lessees to disclose the components of the total cash outflow for leases together with the line item in the statement of cash flows in which each component is presented. However, the Board tentatively decided to take no action in response to stakeholder feedback on:
- the classification and presentation of lease‑related cash flows by lessees; and
- the lack of comparability between the cash flows of lessees and those of entities that borrow to buy assets.
- Statement of Cash Flows and Related Matters: The Board discussed improving the consistency with which entities apply the definition of cash equivalents in IAS 7 Statement of Cash Flows. The IASB tentatively decided to propose including, in the definition of cash equivalents, the requirement for cash equivalents to be held for the purpose of meeting short‑term cash commitments rather than for investment or other purposes. The IASB did not make any decisions regarding clarifying the application guidance related to an investment with a maturity of three months or less. The IASB intends to explore alternative solutions.
- IAS 28 Investments in Associates and Joint Ventures: The IASB continued redeliberations on the proposed amendments.
- IFRIC Agenda Decisions: The IASB approved the following Agenda Decisions, which have now been published on the IASB website:
- Classification of a Foreign Exchange Difference from an Intragroup Monetary Liability (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)
- Fair Presentation and Compliance with IFRS Accounting Standards (IAS 1)
- Economic Benefits from Use of a Battery under an Offtake Arrangement (IFRS 16)
A podcast episode summarising the highlights of this meeting is available on the IFRS Foundation’s website.
In case you missed it
The 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 other 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.
