Welcome to the first edition of Beyond the numbers for 2026. Our monthly newsletter provides a summary of the latest developments from domestic and global standard-setting bodies and regulatory authorities.
Top story
The AASB is hosting a series of in-person practical workshops around the country throughout March 2026 to support reporting entities in applying the scenario analysis requirements of AASB S2 Climate-related Disclosures.
These workshops will feature expert-led training, interactive Q&A, breakout discussions and networking opportunities. Each workshop will be facilitated by an external provider with proven expertise and experience in this field.
Workshop content will include:
- Core concepts for undertaking scenario analysis in line with AASB S2
- Practical tips and lessons learned for efficient and effective climate-related scenario analysis
- A range of approaches, including qualitative and quantitative methods, with consideration of both physical and transition risks and opportunities
- Key elements of the process, such as guidance in Appendix B of AASB S2, scenario development, climate resilience assessment and disclosure practices.
These workshops have limited space and are targeted for Group 1, Group 2 and Group 3 reporting entities.
Local reporting
The AASB is seeking feedback on Exposure Draft (ED) 338 Application of AASB 18 and AASB 107 by Superannuation and Not-for-Profit Entities and Operating Cash Flow Reconciliation.
Key amendments proposed in the ED include:
- Requiring superannuation entities applying AASB 1056 Superannuation Entities to present and classify expenses under that standard rather than AASB 18 Presentation and Disclosure in Financial Statements.
- Not-for-profit (NFP) entities in the private and public sector to consider user information needs in the Conceptual Framework instead of considering what line items provide the most useful information about the main components or drivers of the entity’s profitability as set out in AASB 18.
- NFP public sector entities, including governments, may elect not to classify income and expenses by activity, apply certain AASB 18 paragraphs, or disclose management-defined measures.
- AASB 107 Statement of Cash Flows to permit superannuation entities and NFP public sector entities to classify interest and dividends as operating cash flows and allow profit or loss totals as the starting point for indirect cash flow reconciliations.
Submissions on the Exposure Draft are open until 27 February 2026.
AASB 18 introduces significant changes in how not-for-profit (NFP) entities present and disclose financial information. In summary, the standard introduces new:
- Categories for income and expenses (operating, investing and financing) and requires new subtotals such as operating profit or loss.
- Principles in presenting operating expenses.
- Disclosures for management-defined performance measures.
Use of AASB 18 by NFP entities also results in amendments to AASB 107 Statement of Cash Flows.
The AASB is holding virtual roundtables exploring the suitability of AASB 18 Presentation and Disclosure in Financial Statements and the proposals in Exposure Draft ED 338 for NFP private sector entities and universities preparing Tier 1 general purpose financial statements.
- Virtual roundtable for NFP entities (excluding universities) – 18 February 2026 10:30am–12:30pm AEDT
- Virtual roundtable for universities – 27 February 2026 1:30pm–3:30pm AEDT.
Following the International Accounting Standards Board’s (IASB) amendments, the Australian Accounting Standards Board (AASB) released AASB 2025-4 Amendments to Australian Accounting Standards – Translation to a Hyperinflationary Presentation Currency. The amendments are effective for annual periods beginning on or after 1 January 2027, with early application permitted.
The main changes include:
- Where an entity’s functional currency is from a non-hyperinflationary economy but its presentation currency is from a hyperinflationary economy, the entity translates – including comparatives – using the closing rate at the date of the most recent statement of financial position.
- When the presentation currency ceases to be hyperinflationary, and the functional currency remains non-hyperinflationary, the entity applies the usual AASB 121 translation method going forward, without restating comparatives.
- Entities would have to disclose that they have applied this method and provide summary financial information about the affected foreign operations. They must also disclose when an economy is no longer hyperinflationary.
On 11 December 2025, the AASB issued Exposure Draft ED 339 Risk Mitigation Accounting. The Exposure Draft mirrors proposals issued by the 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.
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 launched its 2027–2031 Agenda Consultation, inviting feedback on future work priorities. Key areas under consideration include sustainability reporting enhancements, public sector reporting, not‑for‑profit frameworks, and climate disclosures under AASB S2.
Comments are due by 31 March 2026.
Regulations
Following an earlier consultation, ASX released amendments to the ASX Listing Rules in light of mandatory sustainability reporting commencing on 1 January 2025 for Group 1 entities.
The changes maintain the existing position under Listing Rule 17.5, whereby a listed entity’s securities are suspended only if it fails to lodge its directors’ report, financial statements or auditor’s report by the due date. Late sustainability reports will not automatically trigger suspension, although other compliance actions may still arise.
ASX confirmed that the rule change does not permit or otherwise enable the deferral of an entity’s annual sustainability reporting.
The revised Listing Rule 17.5 is effective on 16 January 2026.
ASIC has expanded its email lodgement services, allowing 35 additional paper forms – including share capital, auditor, and managed investment scheme updates – to be submitted electronically.
The reform aims to provide a faster, more flexible alternative to postal lodgement and now supports electronic signatures on approved PDF forms.
Listed entities are reminded of upcoming deadlines for periodic reports to ASX:
- Preliminary final reports (December year-end) – Friday 27 February 2026.
- Statutory half year financial reports (except mining exploration and oil and gas exploration entities) (June year-end) – Friday 27 February 2026.
- Statutory half year financial reports for mining exploration and oil and gas exploration entities (June year end) – Monday 16 March 2026.
- Statutory audited annual accounts (December year-end) – Tuesday 31 March 2026.
- Annual reports (December year-end) – Thursday 30 April 2026 for listed companies and Tuesday 31 March 2026 for listed registered schemes.
- December quarterly reports for mining exploration, oil and gas exploration and commitments test entities – Friday 30 January 2026.
- An investment entity must notify the net tangible asset backing of quoted securities within 14 days of the end of each month.
Listed entities are also reminded that a failure to lodge the relevant documents on time (i.e. by close of the Market Announcements Office on the due date) will result in an automatic suspension of the entity’s securities under Listing Rule 17.5.
Sustainability
On 15 December 2025, the AASB issued AASB S2025-1, amending Australian Sustainability Reporting Standard S2 following updates by the International Sustainability Standards Board (ISSB).
The amendments:
- Provide targeted relief for Scope 3 Category 15 emissions, allowing entities to focus on financed emissions related to loans, project finance, bonds, equity investments and undrawn loan commitments. Meaning, entities can exclude emissions associated with derivatives, and facilitated emissions arising from investment banking and insurance underwriting activities;
- Introduce greater flexibility in industry classification for financed emissions, removing the requirement to use the Global Industry Classification Standard (GICS) and allowing entities to apply a classification system that better reflects their risk exposures;
- Allow entities to use alternative greenhouse gas measurement methodologies where required by a jurisdictional authority or securities exchange, rather than strictly applying the Greenhouse Gas Protocol; and
- Provide jurisdictional relief for using global warming potential (GWP) values other than the GWP values based on a 100-year time horizon from the latest IPCC assessment available at the reporting date.
The amendments are effective for annual reporting periods beginning on or after 1 January 2027, with early adoption permitted.
The Australian Securities and Investments Commission (ASIC) launched its Educational Modules hub in December 2025, aimed at smaller companies and report preparers impacted by the incoming climate-related disclosure requirements. The modules were developed in partnership with the AASB, the University of Technology Sydney, and educational design agency Studio 3 Learning.
The modules cover:
- Governance, strategy, risk management, and climate metrics and targets
- Climate change fundamentals
- Physical and transition risk assessment
- Identifying climate-related opportunities
- Emissions accounting
- Scenario analysis
- Governance and risk oversight
Interactive formats and supporting workshops will be available in the first quarter of 2026.
The Treasury Laws Amendment (Strengthening Financial Systems and Other Measures) Act 2025 received Royal Assent on 4 December 2025.
The Act extends the modified liability provisions of the Corporations Act 2001 to sustainability reports prepared voluntarily and those prepared under an ASIC Instrument. The provisions are not automatic and only apply if:
- Directors include an additional declaration in the sustainability report, and
- The report otherwise fully complies with the Corporations Act 2001 and AASB S2 Climate-related Disclosures.
For reports prepared under an ASIC Instrument, the provisions apply only if the relevant ASIC Instrument specifies.
The amendment applies from 5 December 2025.
The Australian Auditing and Assurance Standards Board (AUASB) released Illustrative Corporations Act Sustainability Assurance Reports. The illustrative reports are intended to promote consistent reporting by auditors from 31 December 2025.
The AUASB notes that the illustrative reports are the result of stakeholder consultation and are subject to future revision.
The International Sustainability Standards Board (ISSB) discussed feedback on its future agenda priorities, focusing on biodiversity, human capital, and connectivity between sustainability and financial reporting. It confirmed plans to develop guidance on materiality assessments and interoperability with jurisdictional frameworks.
A podcast episode summarising the highlights of this meeting is available on the IFRS Foundation’s YouTube channel.
IFRS developments
The IASB has released six illustrative examples demonstrating how to report uncertainties in financial statements. The scenarios cover:
- Judgements on materiality for additional disclosures
- Assumptions under specific IFRS requirements (e.g., IAS 36) and general requirements in IAS 1/IFRS 18
- Credit risk disclosures under IFRS 7
- Decommissioning and restoration provisions under IAS 37, and
- Disaggregating information under IFRS 18.
The final versions are available for paid IFRS subscribers only, but the IASB press release notes that they are essentially the same as the near-final drafts published in July 2025.
The IFRS Interpretations Committee released five tentative agenda decisions for public comment until 6 February 2026. The tentative agenda decisions relate to:
- IFRS 18:
- Classification of gains and losses on a derivative managing a foreign currency exposure;
- Scope of the requirement to disclose expenses by nature
- Assessment of a specified main business activity for the purposes of the separate financial statements of a parent
- Presentation of taxes or other charges that are not income taxes within the scope of IAS 12 Income Taxes; and
- IAS 1: Fair presentation and compliance with IFRS accounting standards
No amendments to IFRS 18 or IAS 1 were proposed. Subject to public consultation, the Committee intends to finalise its decision for approval by the IASB.
A podcast episode summarising the highlights of this meeting is available on the IFRS Foundation’s YouTube channel.
The IASB’s December 2025 meeting covered several key projects, including:
- Statement of Cash Flows and related matters: The Board tentatively decided to extend management-defined performance measure (MPM) requirements to cash flow measures under IFRS 18, improve classification consistency, and require separate presentation of cash flows from discontinued operations.
- Equity method: The Board continued deliberations on feedback relating to the classification of derivatives on own equity when applying the ‘fixed-for-fixed’ condition.
- Business Combinations – Disclosures, Goodwill and Impairment: The Board continued deliberations on feedback received on the exposure draft.
- Provisions – Targeted Improvements (IAS 37): The Board discussed targeted amendments to IAS 37, including clearer guidance on measuring provisions and recognising liabilities, particularly in complex legal and environmental contexts.
The IASB will continue redeliberating these projects at future meetings.
A podcast episode summarising the highlights of this meeting is available on the IFRS Foundation’s YouTube channel.
In case you missed it
ASIC has reissued Regulatory Guide 34 Auditor obligations: Reporting to ASIC (RG 34). RG 34 describes the scenarios that ASIC believes represent a significant contravention of the Corporations Act 2001 (the Act) that the auditor is required to report to ASIC.
The reissued RG 34 clarifies that ASIC considers an entity’s failure to lodge its financial report by the due date is a significant contravention of the Act. In ASIC’s view, your auditor should notify ASIC if they become aware that the entity has failed to lodge its financial report on time, and in any case
- For listed or disclosing entities: Immediately upon failure to lodge by the due date.
- For all other entities: If the report remains outstanding 28 days after its due date.
ASIC can impose substantial fines on a company – currently up to $198,000 per event – for failing to comply with its lodgement obligations.
Entities that have not lodged a financial report with ASIC when required should do so without further delay.
Those that are unable or unlikely to meet their reporting deadlines should seek an extension of time by applying for relief through the ASIC regulatory Portal. Refer RG 51 Applications for relief.
