Welcome to edition 7 of Beyond the Numbers for 2025. Our monthly newsletter provides a summary of the latest developments from domestic and global standard-setting bodies and regulatory authorities.
Top Story
AASB 16 Leases – Post-implementation review
The AASB has issued ITC 55, inviting feedback on the post-implementation review (PIR) of AASB 16, aligning with the IASB’s concurrent review of IFRS 16. The PIR aims to assess whether the Standard is achieving its intended objectives, particularly in improving transparency around lease arrangements.
ITC 55 is structured into three sections: general matters for all stakeholders, sector-specific issues for not-for-profit and public sector entities, and the IASB’s Request for Information.
The AASB is particularly interested in whether AASB 16 has enhanced comparability and decision-usefulness of financial statements, and whether any implementation challenges persist.
Stakeholders are encouraged to submit comments by 5 September 2025.
Local reporting
Not-for-profit (NFP) private sector financial reporting framework
Following consideration of feedback on ED 334 Limiting the Ability of Not-for-Profit Entities to Prepare Special
Purpose Financial Statements, the AASB decided at its July 2025 meeting that the following NFP entities will be required to prepare general purpose financial statements:
- NFP entities required by legislation to prepare financial statements that comply with either Australian Accounting Standards or accounting standards;
- NFP entities required only by their constituting document or another document to prepare financial statements that comply with Australian Accounting Standards, provided that the document is created or amended on or after the date a Standard containing these proposals first becomes effective; and
- NFP entities that elect to prepare general purpose financial statements.
The AASB also continued its deliberations on the NFP private sector Tier 3 reporting framework and finalised the requirements on a number of topics.
Presentation of cash flows by not-for-profit and superannuation entities
At its July 2025 meeting, the Australian Accounting Standards Board (AASB) discussed the revisions to AASB 107 Statement of Cash Flows made by AASB 18 Presentation and Disclosure in Financial Statements.
The Board decided to develop an Exposure Draft addressing:
- the classification of dividends received and interest paid and received by for-profit and NFP public sector entities and superannuation entities; and
- the use of the indirect method of reporting cash flows from operating activities.
The Board decided that universities would be required to apply AASB 18 and the revised AASB 107 without modification on the basis that the requirements are as relevant to universities as they are to for-profit private sector entities.
Regulations
ASIC: Updated guidance for managed investment schemes
ASIC has updated two Regulatory Guides (RGs) relevant to managed investment schemes.
RG 132 updates compliance and oversight expectations for managed investment schemes and other collective investment schemes. The changes reflect recent legislative relief and references to updated Australian ISO compliance standards.
RG 136 was also updated to reflect the introduction of provisions in the Corporations Act that permit meetings of scheme members to be held as a virtual-only meeting or as a hybrid meeting.
ACNC cyber security risk review
The Australian Charities and Not-for-profits Commission (ACNC) has released key findings from a review into cyber security as an emerging risk for charities. The findings highlight the importance of charities implementing measures to minimise risks and effectively manage cyber incidents.
The ACNC has also provided links to cyber security resources, including a cyber security handbook for small business and not-for-profit directors and a governance toolkit.
CA ANZ releases 2025 essential financial reporting guides
CA ANZ members can access the latest financial reporting guides for both Australia and New Zealand. These guides cover key updates for the June 2025 reporting period, including new and amended accounting standards, legislative developments, accounting policies, NFP reporting, climate-related disclosures, and regulator focus areas.
Queensland Treasury updates 2024-25 financial reporting requirements
Queensland Treasury has issued updated Financial Reporting Requirements for Government Agencies, effective 30 June 2025. The consolidated document outlines minimum reporting requirements and includes changes to accounting policies and standards.
Scam alert – Fake ASIC websites
ASIC has warned of scam websites impersonating its official domains, tricking users into sharing personal and financial details. These fraudulent sites closely mimic ASIC’s branding and may link to genuine content.
ASIC emphasised that their legitimate websites are limited to asic.gov.au, asicconnect.asic.gov.au, and connectonline.asic.gov.au.
ASIC urges users to verify URLs, report suspicious activity, and seek help from IDCARE and Scamwatch if affected.
Sustainability
AASB S2 and TCFD: Alignment and key differences
In July 2025, the AASB released a comparison document outlining how AASB S2 Climate-related Disclosures aligns with the Task Force on Climate-related Financial Disclosures (TCFD) recommendations.
AASB S2 integrates the TCFD’s four core pillars – governance, strategy, risk management, and metrics & targets – along with its 11 recommended disclosures. However, AASB S2 requires disclosure of additional detail and other information compared to the TCFD recommendations.
Differences between AASB S2 and TCFD recommendations include more prescriptive language, expanded reporting expectations and a stronger emphasis on financial materiality.
Climate-related reporting uncertainties
In June 2025, the International Accounting Standards Board (IASB) announced it will proceed with illustrative examples to help entities reflect uncertainties, particularly climate-related ones, in their financial statements. This follows feedback received on the Exposure Draft Climate-related and Other Uncertainties in the Financial Statements, which included eight proposed examples.
On 24 July 2025, the IASB published near-final drafts featuring six examples, offering practical guidance on applying IFRS requirements in areas such as impairment, provisions, and financial instruments. Publication of the final examples is expected in October 2025.
ISSB climate-related disclosure update
The International Sustainability Standards Board (ISSB) released two exposure drafts proposing amendments to 50 SASB Standards and related updates to IFRS S2’s industry-based guidance.
The amendments include a targeted review of nine priority SASB Standards – all eight in the Extractives & Minerals Processing sector and the Processed Foods industry – aiming to align them with IFRS S2’s climate-related disclosure requirements. Key focus areas include water management, greenhouse gas emissions, and workforce health and safety.
The exposure drafts are open for public comment until 30 November 2025.
The IFRS Foundation subsequently released a related education material assisting entities in understanding the relationship between SASB standards and the ISSB’s industry-based guidance on implementing IFRS S2.
ISSB issues FAQ on Greenhouse Gas Emissions Disclosure requirements
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.
ISSB Meeting – July 2025
The ISSB met in July to discuss preliminary feedback on proposed amendments to IFRS S2 Climate-related Disclosures.
Key topics discussed include:
- Nature-related SASB amendments: Targeted revisions were proposed to address biodiversity, ecosystems, and ecosystem services, aiming to align with the Taskforce on Nature-related Financial Disclosures (TNFD) and Global Reporting Initiative (GRI) frameworks.
- Human capital concepts: The Board considered clarifying human-capital related terminologies, as well as relationships among risks and opportunities.
- Greenhouse gas emissions disclosures: Feedback on proposed IFRS S2 amendments highlighted key concerns, including calls for optional relief on Scope 3 Category 15 (financed emissions), clearer GICS guidance, and selecting global warming potential metrics.
The ISSB will continue these discussions in future meetings.
A podcast episode summarising the highlights of this meeting is available on the IFRS website.
IFRS developments
IASB update
The IASB met on 24-25 July 2025 to advance several key projects including:
- Business combinations: Continued redeliberation of proposals to amend IFRS 3 Business Combinations and consequential amendments to IAS 36 Impairment of Assets.
- Financial instruments with characteristics of equity: Analysis of feedback on reclassification issues and the effects of relevant laws or regulations on the classification of financial instruments.
- Statement of Cash Flows: The Board considered how the requirements for management-defined performance measures (MPMs) in IFRS 18 Presentation and Disclosure in Financial Statements could be extended to also apply to cash flow measures.
- Hyperinflationary economies: The Board finalised the IFRIC Agenda Decision Assessing Indicators of Hyperinflationary Economies (IAS 29 Financial Reporting in Hyperinflationary Economies). The final Agenda Decision will be published soon.
A podcast episode summarising the highlights of this meeting is available on the IFRS website.
IFRIC update
The IFRS Interpretations Committee (IFRIC) met in June 2025 to address application challenges and clarify interpretations under IFRS Standards.
IFRIC finalised and issued the following tentative Agenda Decisions for public comment until 6 October 2025:
- IFRS 9 – Transaction costs & embedded prepayment options: The Committee considered the application of the definition of transaction costs in IFRS 9 and the requirements in IFRS 9 relating to transaction costs.
The Committee noted that costs that are directly attributable to the origination or issuance of a financial instrument but are incurred before entering into the contractual arrangement, can be incremental and, accordingly, can meet the definition of transaction costs in IFRS 9.
- IFRS 9 – Embedded Prepayment Option: The Committee was asked whether, for purposes of applying paragraph B4.3.5(e)(ii) of IFRS 9 to a prepayment option in a financial liability, ‘the entity’ should be read to refer to ‘the lender’ or ‘the reporting entity’ (that is, the borrower).
The Committee noted there was no diversity in practice and that stakeholders read the requirements as referring to the lender.
Other topics discussed included:
- IFRS 18 – Agenda decision updates: Nine previous Agenda Decisions were updated to reflect the transition from IAS 1 to IFRS 18, aligning terminology and disclosure expectations. This also included updates on disclosures for reportable segments.
- IAS 7 Statement of Cash Flows: Discussion on demand deposits with usage restrictions and movements in liabilities from financing activities.
- Reverse factoring & goodwill disclosures: Updates were proposed to clarify consistent application in areas such as reverse factoring and business combinations.
A podcast episode summarising the highlights of this meeting is available on the IFRS website.
In case you missed it
ASIC focus on climate reporting
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.
We’re here to support you.
If you would like to discuss further any of the information provided in these updates and how it may impact you, please contact your Nexia Edwards Marshall NT Advisor.
