CA ANZ has lodged a submission to the AASB’s consultation to inform the development of its standard setting agenda for 2027-2031. The submission reflects the views of many members who shared their insights at roundtables and discussion forums as well as through our 2025 Chartered Accountants IFRS Survey. It also acknowledges the proposals currently before Parliament that will alter the responsibilities of the AASB later this year, devolving the creation of sustainability standards to a new board as part of a new body; External Reporting Australia (ERA).

The submission identifies the following high priority projects for the accounting and sustainability boards of ERA over the next 5 years.

Project priorities – Accounting Standards  

Key projects are the alignment of reporting requirements for Tier 2, NFP private sector, and NFP public sector entities with the requirements of AASB 18 Presentation and Disclosure in the financial statements to ensure consistent fit for purpose financial statement presentation across the reporting landscape. The AASB also needs to focus on the completion of its financial reporting framework project, involving the issue and implementation of its Tier 3 standard for the not-for-profit sector (Stage 2) and public sector financial reporting framework reform (Stage 3).   

Project priorities – Sustainability Standards  

The key project will be implementation and support for the new climate reporting requirements as they impact Group 1, 2 and 3 entities. The most pressing need is for clarification of the Group 3 requirements and whether differential reporting is planned for this group of entities.   

The submission also emphasised that the impending restructure must ensure that all the standard setting boards of ERA are sufficiently resourced to maintain and enhance Australia’s current high-quality financial reporting and sustainability reporting standards. Given our international harmonisation obligations, this will require sufficient flexibility in their 2027-31 work programs to allow active participation in the agenda consultation processes of the relevant international boards, due next year, and their resulting work programs. 

It is also critical for our stakeholders that the new boards can complete their existing projects in a timely manner before commencing new projects. To this end, it is important to recognise that “completion” of a project does not necessarily end with the release of a standard. It includes the need for staff resources to support the ongoing implementation and production of essential educational materials once these standards are issued, particularly if the standards are Australian specific.