2026 Financial and Sustainability Reporting Update

As we gear up for the 30 June 2026 reporting season, it’s crucial to stay informed about the latest developments in financial and sustainability reporting. ASIC’s recent focus areas highlight ongoing scrutiny, especially around asset valuation, revenue recognition, and disclosure transparency. It’s essential to enhance the disclosure of material business risks, uncertainties, and contingent liabilities.

When it comes to new accounting standards, entities should be well on their way to implementing AASB 18. Understanding its impacts and planning for a smooth transition is key. Our global illustrative consolidated financial statements are now available, showcasing the adoption of IFRS 18. While AASB 18 is a major change, don’t overlook the amendments to AASB 9, which clarify when financial liabilities should be derecognised with electronic payments. 

Recent legal rulings could significantly impact financial reporting. The Federal Court of Australia has ruled that employers can’t offset underpayments with overpayments under annualised salary arrangements. This may lead to recognising material liabilities or disclosing contingent liabilities in financial statements. Additionally, events in the Middle East and changes in tariff regimes could affect many companies and should be considered. 

Some entities have now published their first AASB S2-aligned sustainability reports, offering valuable insights. It’s vital to align financial and non-financial disclosures in these reports with financial statements. The IASB has provided guidance on disclosing uncertainties in financial statements, using climate as an example. While sustainability reporting is still evolving, AASB S2 has been amended to offer additional reliefs, easing the adoption of the new standard.

Stakeholders are encouraged to review this publication in detail and consult the linked guidance materials for further insights. Some PwC resources may require registration via Viewpoint. Follow this link to register.  

•  ASIC areas of focus

• Accounting and financial reporting changes affecting 30 June 2026 and beyond

• Sustainability reporting developments

• Current issues, including the impact of geopolitical conflicts, tariffs, and the Federal Court wage ruling in Australia 

PwC offers a wide range of assurance services designed to instil confidence in what matters most to our clients. Our expertise extends beyond financial statement audits and internal audits, offering solutions to address your biggest problems, such as artificial intelligence, sustainability, and business model reinvention.

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