Clarity in corporate reporting - October 2025 monthly newsletter

Use our models to enhance your financial and sustainability reporting for the December 2025 reporting season

The following December 2025 editions of the models are coming soon to our model financial statements page: 

• Tier 1 model financial report – this model financial report can be used as a guide in achieving best practice outcomes in annual reports of ‘Tier 1’ entities.
  
  A brand-new section has been introduced bringing relevant sustainability reporting guidance together. This important resource is designed to help entities prepare their sustainability reports for the first time

• Model half-year report (December 2025 and June 2026) – will be at available at Model financial statements | Deloitte Australia.

Have your say by providing feedback on the simplified disclosures reporting regime

The Australian Accounting Standards Board (AASB) is currently
undertaking a post-implementation review (PIR) of simplified disclosure requirements for Tier 2 general purpose financial statements, i.e. financial reporting by for-profit entities that don’t have public accountability and certain other not-for-profit entities.  

In September 2025 the AASB issued an Invitation to Comment (ITC) 56 to seek stakeholder views on the future of Tier 2 reporting. ITC 56 is open for comment until 22 January 2026.

Key topics covered in ITC 56:

• AASB 1060 Review - The main focus is to assess the effectiveness of the existing simplified disclosure requirements for Tier 2 entities
• User needs versus preparer costs - The consultation asks if the current Tier 2 framework effectively balances the cost of preparing financial reports with the information needs of users 
• Updates to Standards – The AASB also seeks input on the potential effects of the following Standards on AASB 1060 General Purpose Financial Statements – Simplified Disclosures for For-Profit and Not-for-Profit Tier 2 Entities (AASB 1060):
  • IFRS for SMEs Accounting Standard (Third Edition)
  • AASB 18 Presentation and Disclosure in Financial Statements
  • IFRS 19 Subsidiaries without Public Accountability.

AASB 1060 will either be updated or replaced in response to the feedback received.

Use ASIC’s and the AUASB’s guidance to navigate requirements for audits or reviews of sustainability reports

On 16 September 2025 ASIC issued frequently asked questions (FAQs) on the review and auditing requirements for sustainability reports under the Corporations Act 2001.

The FAQs may be helpful to auditors and preparers of sustainability reports in understanding their respective obligations when performing or obtaining an audit under the Corporations Act. The guidance is not intended to be exhaustive and includes responses to 14 common questions.

For auditors, the FAQs include guidance on what the auditor’s report on the sustainability report must contain, and the extent to which the modified liability settings apply to statements in the auditor’s report on the sustainability report, etc.

For preparers, the FAQs also address questions around the process of the appointment/removal/resignation of auditors, and who can conduct a review/audit of the sustainability report, etc.

In addition, the Auditing and Assurance Standards Board (AUASB) is in the process of populating guidance on its website and indicates illustrative sustainability assurance reports will be available.

Refer ASIC media release for further information.

Register now to attend our upcoming Corporate Reporting Updates

Our November Corporate Reporting Update will provide the guidance needed to soar into what’s new in corporate reporting. In ‘Maintaining momentum’ our Accounting & Corporate Reporting team will provide insights from their knowledge and experience.

We invite you to register and join us at one of our in-person sessions:

• Perth - Wednesday 12 November
• Adelaide - Thursday 13 November
• Brisbane - Thursday 20 November
• Sydney - Tuesday 25 November
• Melbourne - Thursday 27 November.

We will also host a virtual live stream on Tuesday 25 November which can be watched remotely, or from our offices in Darwin and Hobart.

New financial reporting instruments from ASIC

ASIC has re-made five instruments dealing with financial reporting:

• ASIC Corporations (Non-Reporting Entities) Instrument 2025/436
• ASIC Corporations (Post Balance Date Reporting) Instrument 2025/437
• ASIC Corporations (Related Scheme Reports) Instrument 2025/438
• ASIC Corporations (Stapled Group Reports) Instrument 2025/439
• ASIC Corporations (Externally-Administered Bodies) Instrument 2025/584.

In addition, ASIC Corporations (Repeal) Instrument 2025/440 repeals the previous versions of the instruments.

The instruments commence on 25 September 2025. Entities relying on the relief provided by these instruments will need to reference the new instruments in financial statements or other materials (where required).

The instruments are essentially the same as the repealed instruments but have been redrafted to align with current formatting and standards.

For more information see ASIC news item ASIC remakes five legislative instruments providing financial reporting relief.

ASIC publishes financial reporting and audit surveillance reports

On 30 September 2025 ASIC released the findings from their Registrable Superannuation Entity (RSE) financial reporting and audit surveillance for FY 2024-25. Consistent with ASIC’s 2025-26 financial reporting and audit focus areas, the RSE surveillance targeted the valuation and disclosure of investments and the disclosure of expenses.

For more information, refer ASIC media release.

ASIC has also performed surveillance on auditor compliance with independence and conflicts of interest obligations. The published report and findings are available on ASIC’s website.

Finally, the findings from ASIC’s general FY 2024-25 financial reporting and audit surveillance are expected to be released later in October. This will be covered in the November 2025 edition of our Clarity in corporate reporting newsletter.