The Financial Reporting Update 2025 provides critical guidance for entities reporting on 30 June 2025, focusing on areas influencing financial reporting and sustainability. ASIC's ongoing focus includes impairment and asset values, provisions, events after year-end, and disclosure practices.
Entities must address Australia's Global and Domestic Minimum Tax legislation, calculating and disclosing Pillar Two tax obligations, and comply with the IFRS agenda decision on segment disclosures. They should also anticipate impacts from tariff policy uncertainties.
Special attention must be given to the updates on hyperinflationary economies, Corporations Act amendments, and changes to AASB standards for June 2025. Australia's new sustainability standards necessitate comprehensive reporting and preparation for mandatory disclosures. Stakeholders should consult guidance materials for deeper insights.
ASIC’s areas of focus
Accounting and financial reporting changes impacting 30 June 2025 and beyond
Understand the new guidance on classifying financial liabilities as current or non-current and the new disclosure requirements related to debt covenants and supplier finance arrangements.
Disclose foreign tax residency for all entities, irrespective of whether they are an Australian tax resident, when preparing the 2025 Consolidated Entity Disclosure Statement (CEDS).
Recognise potential financial reporting impacts of tariffs on revenue recognition, taxes, impairment of non-financial assets, and liquidity.
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Partner, Corporate Reporting Services, PwC Australia
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