Clarity in corporate reporting - June 2026 monthly newsletter

Use our new guide to navigate current regulatory expectations

We’ve published a new Clarity publication Reporting priorities in focus. It brings together ASIC’s observations and expectations on financial and sustainability reporting and will be a useful resource for entities preparing June and December 2026 reports.

The publication:

• Unpacks ASIC’s key focus areas for financial reporting, audit and sustainability reporting for 2026–27, including where the regulator is seeing continuing challenges and where scrutiny is likely to remain high
• Draws together the broader regulatory context, including recent surveillance outcomes and ASIC’s early observations on sustainability reporting, to show how these focus areas are playing out in practice
• Highlights the themes emerging from recent reviews and enforcement activity, giving preparers a clearer sense of the issues attracting attention
• Adds practical commentary on the areas likely to matter most in year-end reporting, including deeper observations on selected focus areas, examples of areas of significant judgement and increased need for transparent disclosure, and additional detail to help preparers translate ASIC’s messages into more robust, entity-specific reporting.

Download the publication to better understand ASIC’s expectations and how entities can respond in practice.

New rate regulation Standard issued

The IASB has issued IFRS 20 Regulatory Assets and Regulatory Liabilities, introducing a new accounting model for entities affected by rate regulation, including in sectors such as utilities and energy.

The Standard is designed to better align recognition of an entity’s total allowed compensation with the period in which the related goods or services are provided. It also includes detailed requirements on recognition, measurement, presentation and disclosure.

IFRS 20 applies alongside existing IFRS Accounting Standards, including IFRS 15 and IFRIC 12, and replaces the interim Standard IFRS 14. It is effective for annual reporting periods beginning on or after 1 January 2029, with early application permitted. The AASB is expected to release an equivalent pronouncement in due course.

More information:

• IASB media release IASB issues IFRS 20 to improve financial reporting for companies subject to rate regulation
• IFRS 20 Regulatory Assets and Regulatory Liabilities
• IASB publication IFRS 20 at a glance
• iGAAP in Focus IASB issues IFRS 20 ‘Regulatory Assets and Regulatory Liabilities’.

United States SEC seeks to rescind climate disclosure rule

The United States Securities and Exchange Commission (SEC) has proposed rescinding its March 2024 final rule on climate disclosures. The final rule would have mandated “highly specific and granular disclosure from virtually all public companies about climate-related matters such as greenhouse gas emissions, management of climate-related risks, and the financial statement effects of severe weather events”.

The Commission had decided to end its defence of the final rule (in March 2025) after previously staying its effectiveness (in April 2024) pending the resolution of legal challenges.

New ‘Tier 3’ pronouncements released

The AASB has issued pronouncements implementing a new ‘Tier 3’ reporting regime for certain not-for-profit entities.

The new Tier 3 requirements are contained in AASB 1061 General Purpose Financial Statements – Not-for-Profit Private Sector Tier 3 Entities and represent the minimum requirements for a general purpose financial report for eligible entities. The Standard includes recognition and measurement simplifications, as well as presentation and disclosure simplifications. For example, consolidation is permitted but not required, and financial instrument accounting is simplified.

Tier 3 entities are not-for-profit private sector entities that are not publicly accountable and are not prohibited from applying Tier 3 by legislation or their constituting document. The AASB has not specified thresholds or other criteria for applying Tier 3, instead leaving this to legislators and regulators.

Consequential amendments implement changes throughout many pronouncements to accommodate the new Tier 3 requirements and require certain not-for-profit entities to prepare general purpose financial statements and apply the Conceptual Framework for Financial Reporting. Accordingly, affected entities will no longer be able to prepare special purpose financial statements. The new requirements apply to annual reporting periods beginning on or after 1 July 2029.