Australian Government signals intention for streamlined financial reporting architecture

Last month, Treasury announced its intention to streamline Australia’s ‘financial reporting architecture’, through the consolidation of the Australian Accounting Standards Board (AASB), the Auditing and Assurance Standards Board (AUASB) and the Financial Reporting Council (FRC) into one body.

The proposed restructure will ensure the new, integrated body is “efficient, effective and fit for purpose”. It is intended to be operational from 1 July 2026 – but first, the Government will release draft legislation for public comment. It will also need to be passed into legislation.

The new body is expected to increase regulatory consistency through its responsibility for accounting and audit standards, as well as the implementation of climate-related financial disclosure standards in Australia. Businesses, investors and other stakeholders are said to be the beneficiaries of the slated change.

In the meantime, the AASB is expected to progress the development of Australia’s framework for climate-related financial disclosure standards, a priority in the Government’s draft Sustainable Finance Strategy.

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While it’s still early days, if you’d like to discuss what the proposed changes might mean for your organisation, contact us today.