Financial Reporting Update 2025

The Financial Reporting Update 2025 provides important guidance for entities to consider in their 31 December 2025 reporting season, focusing on areas influencing financial reporting and sustainability. ASIC's areas of focus and recently released surveillance report highlight their continued focus on areas such as impairment and asset values, provisions, revenue, and disclosures of non-IFRS profit measure and material business risks in the Operating and Financial Review. Additionally, ASIC continues to increase its focus on registrable superannuation entities and the lodgement obligations for private entities.

Entities should ensure their financial statements include disclosures of any potential impacts arising from uncertainties that may be highlighted outside the financial statements. These uncertainties may relate to risks around the impacts of tariffs, climate change, climate-related commitments, geopolitical uncertainties, etc.  The evolving regulatory landscape, driven by Australia’s new sustainability standards aligned with global requirements, highlights the necessity for comprehensive reporting and preparation for mandatory disclosures. 

Companies should also be mindful of the recent federal court ruling in relation to wage payments to salaried employees in Australia, as well as the impacts of the tariffs and the newly legislated tax bill in the United States. 

• ASIC’s areas of focus
  

• Accounting and financial reporting changes impacting 31 December 2025 and beyond.

• Sustainability reporting developments

• Current issues, including impact of tariffs, new tax legislation and the federal court wage ruling in Australia 

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